The Republican-led US Senate Banking Committee has advanced long-awaited legislation aimed at regulating cryptocurrencies, marking a landmark step for a bill previously stalled by disputes between crypto firms and banks. The measure, which garnered bipartisan support with two Democrats joining all Republicans, will now proceed to the full Senate, setting the stage for a significant lobbying battle. Known as the Clarity Act, the proposed legislation seeks to clarify regulators’ jurisdiction over the burgeoning digital asset sector.

The crypto industry has aggressively championed the legislation, arguing it is crucial for the future of US digital assets and essential for defining when crypto tokens are classified as…