U.S. House Advances Landmark Crypto Bill

The U.S. House of Representatives on Thursday passed the Digital Asset Market Clarity (CLARITY) Act, a significant step in defining how digital assets are to be regulated at the federal level. The bill, which garnered bipartisan support with a 294-134 vote, aims to establish a legal foundation for the oversight of cryptocurrencies and blockchain-based financial services.

Although initiated by Republican lawmakers, nearly 80 Democrats joined in support. The measure is part of a broader legislative push informally branded "crypto week" by GOP members and aligns closely with former President Donald Trump's stated crypto policy objectives.

The vote came after internal disputes delayed proceedings, particularly around provisions addressing central bank digital currencies (CBDCs). Some Republican lawmakers insisted on language that would preclude the development of a U.S. government-backed digital dollar, citing privacy concerns.

The CLARITY Act is the first of three related bills expected to move through the House before the August recess. The upcoming Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and the Anti-CBDC Surveillance State Act remain pending. Trump has indicated he would sign the GENIUS Act into law, provided it reaches his desk in its current form.

While Senate Democrats such as Elizabeth Warren and Amy Klobuchar opposed the legislation, citing potential regulatory gaps and ethical concerns, others emphasized its potential benefits. Senator Tim Scott called the measure a "win for national security and innovation," while Senate Majority Leader John Thune noted it could help the U.S. emerge as a global leader in the crypto space.

Warren voiced particular concern over Trump's connections to World Liberty Financial, a decentralized finance (DeFi) firm linked to his family, warning the legislation could "enable presidential corruption through crypto" if not amended.