The Clarity Act, one of the most important legislative proposals for cryptocurrency regulation in the US, is still in the process of being passed.
At this point, Clarity, also known as the Transparency Act, is scheduled to be debated and voted on by the Senate Banking Committee on May 14th. This will be a significant milestone for the crypto industry.
As markets prepare for this vote, Galaxy Digital argued in its latest report that the Clarity Act’s passage through the Senate depends on the approval of seven Democratic senators.
According to Galaxy Digital’s analysis, the passage of the bill depends on the votes of seven key Democratic committee members.
“The Senate Banking Committee (SBC) will vote on the CLARITY Act this week (Thursday, May 14).”
If the Democrats vote yes on the bill during the voting phase, the likelihood of its eventual passage in the Senate floor increases significantly.
In a table shared on X by Galaxy Digital, these seven senators were listed as follows: “Ruben Gallego, Mark Warner, Angela Alsobrooks, Catherine Cortez Masto, Andy Kim, Raphael Warnock, Lisa Blunt Rochester”
Ruben Gallego and Angela Alsobrooks are classified as supporters of a regulatory framework. Four members—Mark Warner, Catherine Cortez Masto, Andy Kim, and Raphael Warnock—are considered conditional negotiators.
Senator Lisa Blunt Rochester, while supporting the framework, is seen as an uncertain factor as she opposed the GENIUS Act.
While the other six members besides Rochester had previously supported the GENIUS Act, they are now calling for stronger measures against illicit finance and money laundering under CLARITY.
In contrast, the table lists four additional Democratic members: Jack Reed, Elizabeth Warren, Tina Smith, and Chris Van Hollen. According to the report, these four additional members are expected to oppose the CLARITY Act, given their past opposition to the GENIUS Act.
As is known, the bill aims to create clearer federal rules for digital assets by splitting oversight between the SEC and the CFTC. The market believes this could reduce one of the biggest regulatory uncertainties surrounding Bitcoin, Ethereum, XRP, and the broader crypto market.
*This is not investment advice.