Coinbase on CLARITY Act: Senate Passage Still Hurdled by Ethics Fight and Democratic Votes

CoinMarketCap reports that the U.S. Senate Banking Committee has advanced the CLARITY Act, a cryptocurrency market structure bill, sending it to the next legislative stage. The measure is not yet headed straight to a full Senate floor vote: lawmakers are expected to keep revising the text, and the biggest obstacles remain limited Democratic backing and ongoing disputes over ethics provisions. Coinbase Chief Legal Officer Paul Grewal said stakeholders are still working toward enactment, but significant negotiations remain. He said Democrats, Republicans, federal agencies, and the crypto industry continue to engage through the committee review process. The bill cleared the Senate Banking Committee 15"9. Next, it is expected to be combined with a separate piece overseen by the Senate Agriculture Committee, which focuses on the U.S. Commodity Futures Trading Commission's (CFTC) regulatory authority. Ethics language remains central to the debate. If enacted, the final package would create another federal framework for U.S. crypto regulation, following the Stablecoin GENIUS Act. Before any full-chamber vote, multiple amendments are anticipated, while banking lobbying groups continue pressing for an outright ban on stablecoin yield arrangements. Sen. Reuben Gallego, one of only two Democrats who supported the bill in committee, said he would oppose it on the Senate floor unless the final version includes ethics provisions. The bill also needs bipartisan support to clear the 60-vote threshold. With 53 Republicans in the Senate, passage would require at least seven Democrats to vote "yes" if all Republicans back it. TD Cowen Managing Director Jaret Seiberg raised his estimate of passage odds to 40% but cautioned that Democrats may insist on a separate vote on a conflict-of-interest amendment. He added that the standards could implicate U.S. President Trump, further complicating the bill's path. John O'Loghlen, Head of Coinbase Asia-Pacific, said a clearer U.S. crypto rulebook could speed up cross-border regulatory coordination. In markets, Bitcoin fell more than 5% to below $78,000 around the time of the report. Coin Bureau macro analyst Nic Puckrin said the bill's progress appeared partly priced in, while Middle East tensions and broader macro pressures continued to weigh on risk assets.