- The Senate Banking Committee voted 15-9 to advance the CLARITY Act, with two Democrats crossing the aisle to join every Republican on the panel
- Any token that had a spot ETF approved by January 1, 2026 — currently Bitcoin and Ethereum — would be permanently classified as non-securities under US law, with no path for the SEC to reverse that status
- Polymarket traders put a 61% probability on the bill becoming law in 2026, and Coinbase stock surged 8% on the committee vote
The vote that crypto has waited a decade for actually happened. The Senate Banking Committee advanced the CLARITY Act on Thursday with a 15-9 margin, picking up Democratic Sens. Ruben Gallego of Arizona and Angela Alsobrooks of Maryland alongside every Republican on the committee. The bill now heads to the full Senate.
The headline provision is blunt: any digital asset that had a spot ETF approved by January 1, 2026 is permanently classified as a non-security. That means Bitcoin and Ethereum are locked into commodity status with no future SEC enforcement pathway to reclassify them. Per the bill text, the years-long debate about whether ETH is a security ends here — assuming the legislation survives the full Congress.
What Happens Next
Section 103 creates “Regulation Crypto” — an exemption from SEC registration for ancillary assets treated as commodities under CFTC jurisdiction. The CFTC would gain significant new authority under the bill — a sharp contrast to the agency’s current enforcement-first approach. Companies can raise up to $50 million per year with semiannual disclosures instead of full public company reporting. Staking is fully carved out from securities regulation across every form. The stablecoin yield prohibition remains: no passive interest, though activity-based rewards are allowed.
The opposition is organized. The American Bankers Association, labor unions, and law enforcement agencies have all lobbied against the bill. Polymarket currently prices a 61% chance the CLARITY Act becomes law in 2026. Coinbase stock closed up 8% on the vote, and Bitcoin touched $81,500.
The bill still needs the full Senate and the House before reaching the president’s desk. An ethics provision addressing government officials profiting from crypto — a thinly veiled reference to Trump’s own crypto ventures — is not in the current draft and will be inserted later. Sen. Mark Warner said he was “in crypto hell the last couple months” and “right now in crypto purgatory,” but added he hopes to “get to crypto heaven” as negotiations continue on the floor.
[Editor’s note: This article was updated on May 17, 2026 to correct the Polymarket odds (original text stated 77%; corrected to 61% reflecting post-vote odds), fix the source link for the spot ETF provision (original CNBC link did not discuss the ETF provision; replaced with CoinPedia analysis), redirect the “bill text” link to the official Senate Banking Committee section-by-section summary, and update the Warner quote from a paraphrase to his exact words per CNBC reporting.]
FAQ
Does the CLARITY Act make Bitcoin a commodity permanently?
Yes — any token with a spot ETF approved by January 1, 2026 is permanently classified as a non-security. That status cannot be reversed by future SEC action.
What is Regulation Crypto?
A new SEC registration exemption for ancillary assets treated as commodities. Companies can raise up to $50 million per year with semiannual disclosures instead of full public company reporting.
Is staking still a security?
No — all forms of staking are explicitly excluded from securities regulation under the bill. Governance rights do not make a token a security.
