Bitcoin rose 3% and Coinbase stock surged more than 8% as the Senate Banking Committee advanced the most consequential crypto market structure bill in U.S. history. Substantial hurdles remain before it becomes law.
Bitcoin climbed to $81,500 Thursday as the Senate Banking Committee voted 15-9 to advance the Digital Asset Market Clarity Act to the full Senate floor, pushing crypto-related stocks sharply higher.
Coinbase surged more than 8% during the session, Strategy rose 7%, and Galaxy Digital gained more than 6%. USDC issuer Circle, which had been down as much as 6% earlier in the day, rebounded into positive territory.
The rally reflected market expectations that the bill — the most comprehensive crypto market structure legislation to reach this stage in Congress — brings the U.S. crypto industry closer to a regulatory framework that could unlock broader institutional participation. The S&P 500 also hit 7,500 for the first time on the day, though crypto stocks outpaced the broader market.
Democrats Broke Rank
The vote was 15-9, with two Democrats — Senators Ruben Gallego and Angela Alsobrooks — crossing party lines to support the bill. Alsobrooks said her committee vote would not translate to floor support unless outstanding concerns were resolved. Senator Elizabeth Warren voted against, calling the bill “not ready” and arguing the Senate had higher priorities than crypto industry legislation.
The bill’s central purpose is to end jurisdictional ambiguity between the SEC and CFTC over digital assets, a gap that has left the industry subject to regulation by enforcement rather than statute for years.
The bill would establish which digital assets are commodities, which are securities, and what obligations apply to exchanges, brokers, and custodians. It also protects non-custodial software developers and validators from being classified as money transmitters.
“Regulatory Purgatory”
“For years, U.S. blockchain entrepreneurs have been operating in regulatory purgatory,” said Asheesh Birla, CEO of Evernorth. “Regulatory clarity moves capital and the institutions that have studied this category from a distance are a step closer to a framework they can act on.”
The bill’s path to Thursday’s vote was long. It passed the House 294-134 in July 2025, The Defiant reported. Its Senate journey was repeatedly delayed; first by disagreements between banks and stablecoin issuers over yield provisions, then by a January markup cancellation after Coinbase pulled its support over the same issue, The Defiant reported.
Banks spent the week before the vote mobilizing opposition: the American Bankers Association sent more than 8,000 letters to Senate offices arguing stablecoin yield provisions could draw deposits away from traditional lenders, The Defiant reported.
Contested Path
The path forward remains contested. The Banking Committee version must be merged with a companion bill that cleared the Senate Agriculture Committee in January.
Democrats have made an ethics provision, restricting senior government officials from having financial ties to crypto firms, a condition of floor support. That provision was not included in Thursday’s markup. Senator Kirsten Gillibrand has said the bill will not get 60 votes without it. The White House has said it will not accept a bill that targets the president.
The 60-vote threshold is the central problem. Republicans hold 53 seats, meaning several Democratic votes are required, and those votes are contingent on ethics language Republicans are resisting. Senators Cynthia Lummis and Bernie Moreno have warned that if the bill does not advance before the August recess, the next viable legislative window may not arrive until 2030.
“Moving from markup toward a full Senate vote signals growing recognition that not every participant in crypto is acting as a financial intermediary,” said Cathy Yoon, General Counsel at Harmonic. “Thoughtful legislation can create rules for custodians and centralized actors while still preserving space for validators, open networks, and software developers.”
Bill Significance
Others pointed to the bill’s significance for developers specifically.
“Existing guidance suggests non-custodial activity generally should not create money transmission exposure, yet some litigation theories and court decisions have pointed in the opposite direction,” said Mari Tomunen, General Counsel at DoubleZero. “The Clarity Act helps create clearer statutory boundaries for decentralized and non-custodial activity.”
Blockchain Association CEO Summer Mersinger called Thursday’s vote “a defining moment,” saying the bill would benefit consumers “by expanding access to compliant and innovative financial products” and reducing reliance on offshore platforms. “Durable, lasting digital asset policy must be built on a bipartisan foundation,” she said“and today’s vote reflects the growing recognition across party lines that the United States needs clear rules of the road.”
If the bill clears the Senate and is reconciled with the House version, the SEC, CFTC, and Treasury would be directed to draft implementing rules, a process expected to run into 2027, with most compliance deadlines landing in 2027 and 2028.