Senator Tim Scott seeks bipartisan support from Democrats for cryptocurrency legislation, while Senator Elizabeth Warren mobilizes against it
The CLARITY Act, a significant piece of legislation aimed at regulating the cryptocurrency sector, recently passed the House of Representatives with strong bipartisan support in July 2025 [2][3][4][5]. This bill, currently awaiting consideration in the Senate, seeks to establish a clear regulatory framework by delineating authority between agencies like the SEC and CFTC, enhancing investor protections, and promoting market trust [1][4].
While the bill has enjoyed overall bipartisan momentum, securing the 60 votes needed in the Senate to overcome a filibuster remains challenging [3]. The Democrats will need to bring at least seven senators on board to enable passage. Some Democratic senators, including Senator Kirsten Gillibrand and others, are involved in negotiations and show a willingness to work with Republicans [3].
However, Senator Elizabeth Warren has been a notable objector. As the Senate Banking Committee Ranking Member, she has consistently criticized the digital asset industry and is expected not to support the bill. Warren's concerns include insufficient consumer protections and the historical misuse of digital assets for illicit activities such as money laundering and fraud [3]. Her opposition presents a significant obstacle within the Democratic caucus.
The opposition from Senator Warren is linked to a political attack from Democrats against President Trump's business interests in the crypto sector. This framing could make support for the bill politically toxic for Democrats, as it associates it with the President's private financial gains [6].
Scott, a key proponent of the bill, is optimistic about its prospects. His optimism is not just hopeful, but rooted in the crypto-friendly executive branch [5]. He believes the Trump administration can act as a powerful ally in lobbying legislators and preparing regulatory machinery for swift implementation.
Meanwhile, Circle, a prominent cryptocurrency company, has launched Gateway for USDC transfers across seven blockchains [1]. This move is seen as a step towards improving the ease of use and interoperability of digital currencies.
As the end of the month approaches, Scott has set a self-imposed end-of-month deadline for committee action, which is a critical test of his political capital and his ability to forge a working coalition [4]. The outcome of these negotiations will determine the future of the CLARITY Act and the regulatory landscape of the U.S. cryptocurrency sector.
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