Crypto Clarity Act Hits Partisan Wall at Senate Banking Committee Markup Hearing

The U.S. Senate Banking Committee's long-awaited markup hearing on the Digital Asset Market Clarity Act opened Thursday with a stark admission from both sides: bipartisan agreement hasn't been reached. Republican Chairman Tim Scott struck a cautiously optimistic tone, insisting the process isn't over, while ranking member Elizabeth Warren called the bill "not ready for prime time" and warned it would "blow a hole" in securities laws dating to 1929.

Senator Cynthia Lummis, the Wyoming Republican leading the digital assets subcommittee and one of the bill's chief architects, framed the gap as narrow — just "1% of remaining issues" — but that sliver covers consequential ground: DeFi treatment and a government-ethics provision barring senior officials from the crypto industry. If the committee votes along party lines at 13-11, the bill still advances and merges with a companion measure…