The U.S. Senate Banking Committee advanced the contentious CLARITY Act cryptocurrency bill amid intense lobbying. The vote followed a last-minute push by banking advocates who cited data showing illicit crypto flows surged 162% to $154 billion in 2025. They argued crypto firms have avoided anti-money laundering rules that burden traditional banks.
The Senate Banking Committee voted 15-9 to advance the CLARITY Act, a crypto market structure proposal. The vote followed significant debate over amendments related to stablecoin regulations.
Just ahead of the vote, the Bank Policy Institute shared data on illicit crypto activity. The institute stated illicit crypto addresses received $154 billion in 2025, a 162% year-over-year increase.
This surge was driven by a 694% jump in value received by sanctioned entities. The on-chain money laundering ecosystem reportedly grew from $10 billion in 2020 to over $82 billion in 2025.
The BPI argued stablecoins, primarily Tether, now account for 84% of all illicit transaction volume. It said crypto companies have been largely exempt from the anti-money laundering obligations that banks face.
Banking groups sent Senate offices more than 8,000 letters ahead of the markup vote. The crypto advocacy group Stand With Crypto said its supporters had contacted lawmakers nearly 1.5 million times in support of the bill.
In a counter-argument, Binance Research offered pushback to the claims about laundering. Its report suggested trapped illicit funds on-chain have grown because less is being successfully laundered, not more.
