US Senators Fail to Reach Bipartisan Support on Crypto Clarity Act

The US Senate Banking Committee moved forward with discussions on the Digital Asset Market Clarity Act on May 14, but lawmakers admitted they are still struggling to secure bipartisan support for the crypto market structure bill.

During a key “markup” hearing, senators reviewed amendments and debated changes to the legislation, which aims to create clearer rules for digital assets in the United States. Republican lawmakers largely supported the effort, while several Democrats continued to raise concerns about investor protection and financial oversight.

Committee Chairman Tim Scott said disagreements were expected but stressed that negotiations were far from over. He said lawmakers are still working toward a version that can gain broader support before reaching the Senate floor.

Cynthia Lummis Says Only Small Issues Remain

Senator Cynthia Lummis, a leading Republican voice on digital assets, described the legislation as one of the most difficult she has worked on. She said negotiators had resolved most concerns and were down to roughly “1%” of remaining issues.

One of the biggest unresolved topics involves how decentralized finance (DeFi) should be treated under the bill. Lawmakers are also debating ethics provisions designed to prevent senior government officials from entering the crypto industry after leaving office.

If approved by the committee, the bill could still move ahead even without Democratic backing and later merge with a similar version already passed by the Senate Agriculture Committee.

Elizabeth Warren Criticizes Crypto Bill

Senator Elizabeth Warren remained one of the strongest critics of the proposal, arguing the bill could weaken securities laws that have protected investors for decades.

Warren warned that the legislation may expose consumers to fraud and place retirement savings at risk while benefiting wealthy crypto investors. Democrats also argued the bill still leaves major questions unanswered around illicit finance and consumer safety.

Republican Senator Thom Tillis pushed back, saying current crypto regulation is insufficient and that maintaining the status quo is no longer an option.