The U.S. Senate Banking Committee approved the Digital Asset Market Clarity Act (H.R. 3633) by a 15-9 vote on Friday, sending the crypto market-structure legislation to the full Senate floor. The bill aims to define whether digital tokens fall under securities or commodities regulation—or neither—and would split oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Bitcoin traded near $80,837 after briefly touching $81,974, while Ether hovered around $2,266. Shares of Coinbase (COIN), Robinhood (HOOD), and Strategy (MSTR) each climbed roughly 5% on the news. The broader crypto market responded positively, but the rally remains tempered by macroeconomic headwinds.
Bipartisan Support, But Not Without Warnings
All 11 Republican committee members supported the bill, joined by Democrats Ruben Gallego and Angela Alsobrooks. However, both Democrats cautioned that their floor votes are not guaranteed. Senator Elizabeth Warren, the committee’s top Democrat, criticized the bill as “not ready for prime time,” citing gaps in consumer protections, anti-money-laundering rules, and ethics provisions. Several Democrats also pointed out that the legislation does not prevent political figures from profiting from crypto ventures.
Market Reaction and ETF Flows
Despite the policy optimism, ETF flows paint a mixed picture. According to Farside Investors, U.S. spot Bitcoin funds swung from $630.4 million in net outflows on May 13 to $131.3 million in net inflows by May 14. This suggests that while the vote provided a lift, investors remain cautious after last week’s volatility. Polymarket traders see a 68% chance the Clarity Act becomes law in 2026, with over $906,400 wagered. Meanwhile, rate markets show little expectation of Federal Reserve cuts, with odds of a rate hold at 98% for June and 68% for zero cuts in 2026.
Stablecoin Dispute and Regulatory Hurdles
Stablecoins remain a sticking point. Banks object to crypto firms offering rewards that resemble deposit interest, while crypto advocates argue that activity-based perks should be allowed. The legislation would also extend Bank Secrecy Act requirements—including anti-money-laundering checks and customer vetting—to digital commodity brokers, dealers, and exchanges.
Coinbase CEO Brian Armstrong called the vote “a big opportunity to move America’s financial system forward,” while Miller Whitehouse-Levine of the Solana Policy Institute noted, “It’s taken years of work to get to this point.”
What’s Next?
The bill now faces a full Senate vote, and lawmakers must reconcile differences with the House version. House Financial Services Chair French Hill and House Agriculture Chair G.T. Thompson said the committee’s approval keeps momentum, but final passage depends on negotiations between both chambers before reaching President Donald Trump’s desk. Alex Thorn, head of firmwide research at Galaxy, pegged the legislation’s odds of becoming law in 2026 at 55%, warning that a party-line markup could hurt its chances on the floor.
For now, crypto’s rally is driven by policy developments rather than technical breakouts. The Senate vote provided a boost to Bitcoin and related equities, but lingering headwinds—from ETF flows to rate-cut uncertainty and Democratic pushback—mean the deal is far from done.
