The Senate Banking Committee has advanced the Digital Asset Market Clarity Act on Thursday in a 15-9 vote, moving the crypto market structure bill closer to a possible full Senate vote. The vote was bipartisan, with Democratic Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland joining all Republicans on the committee in support of the bill. The measure now moves to the next stage in the Senate, though it still must clear the full chamber and be reconciled with House legislation before it can become law. Senator Cynthia Lummis, who chairs the Senate Banking Subcommittee on Digital Assets and has been one of the bill’s main champions, said the legislation is needed to stop digital asset activity from moving offshore. She argued that without clear rules, crypto companies will continue shifting to countries where regulators are more willing to engage. “Without the Clarity Act, the digital asset industry will move offshore to any nation that has regulators willing to engage,” Lummis said before the vote. “Every day that we stall is a day we hand our competitors an advantage we won’t get back.” Senate Panel Clears Crypto Market Structure Bill The Clarity Act is designed to create a federal regulatory framework for digital assets, including token classification, market oversight, consumer protection and anti-illicit finance rules. Senate Banking Committee Chair Tim Scott said the bill is meant to end years of uncertainty in the crypto sector. During the markup, he said developers, entrepreneurs and investors had been left in a regulatory gray zone while enforcement actions filled the gap left by Congress. Scott said the bill aims to protect consumers, keep financial innovation in the United States and support national security. He framed the legislation as a set of market rules rather than a partisan project. Senator Thom Tillis also supported the bill after months of negotiations. He said the committee-approved version represents a bipartisan compromise and that additional work will continue before a final Senate vote. The bill is backed by major crypto companies and investors, including Coinbase, Circle, Ripple and Andreessen Horowitz. Coinbase CEO Brian Armstrong called the vote an opportunity to move the U.S. financial system forward. Cynthia Lummis Says Banks Should Embrace Digital Assets Lummis said the legislation would bring digital assets into the U.S. financial system instead of leaving the market without clear federal standards. She argued that the current environment allows bad actors to operate while legitimate companies seek clearer jurisdictions abroad. She also addressed opposition from parts of the banking industry. According to Lummis, some banks view stablecoins and digital asset firms as competition for deposits. She said she disagrees with that assessment and believes banks should offer digital asset products alongside traditional services. Lummis said stablecoin issuers could help create more demand for U.S. Treasuries because compliant stablecoins need high-quality reserves. She pointed to firms such as Tether as large buyers of Treasuries and said new demand for government debt could support U.S. markets. The banking industry remains concerned that the bill may allow crypto firms to offer reward programs that resemble interest on stablecoin balances. Crypto supporters say the current draft allows rewards tied to activity, such as spending or transactions, rather than passive yield. Democrats Seek More Changes Before Floor Vote Although the bill advanced with two Democratic votes, several Democrats said more work is needed before they can support the measure on the Senate floor. Senator Mark Warner said he wants to continue negotiations and reach a stronger final version. Other Democrats raised concerns over law enforcement powers, developer protections, and ethics rules involving elected officials with crypto interests. One major dispute involves provisions tied to the Blockchain Regulatory Certainty Act, which would protect non-custodial software developers from being treated as money transmitters when they do not control user funds. Law enforcement groups have argued that the language could make some crypto crime cases harder to pursue. Ethics language also remains unresolved. Some Democrats have pushed for stronger conflict-of-interest provisions after President Donald Trump and his family became involved in crypto ventures. The bill also faces opposition from banking groups, law enforcement organizations and labor unions. Labor groups have warned that wider crypto adoption could create risks for retirement and pension accounts, while law enforcement groups want stronger tools to pursue illicit finance. The Clarity Act must still pass the full Senate. If approved there, it would need to be reconciled with a version passed by the House before heading to the president’s desk.