WASHINGTON D.C.: The U.S. Senate has taken a key procedural step toward advancing legislation that would create a federal regulatory framework for cryptocurrencies, a move that could deliver a major policy victory for President Donald Trump and the crypto industry.

Senate Majority Leader John Thune filed to set up a procedural vote on the Clarity Act when lawmakers return from the August recess in mid-September, potentially paving the way for a full Senate vote, according to the U.S. Senate Press Gallery website.

The move indicates Senate Republican leaders believe they may still be able to secure the 60 votes needed to pass the legislation despite continued opposition from many Democrats. The bill currently requires the support of at least eight Democrats along with all voting Senate Republicans.

The Clarity Act would establish the first comprehensive federal rulebook for the cryptocurrency industry by defining when digital tokens should be treated as securities or commodities and determining which regulators would oversee them.

Crypto companies have argued that the legislation would provide long-awaited legal clarity for the industry and could encourage broader adoption of digital assets.

If passed, the bill would also hand Trump a second major crypto policy victory after he signed legislation supporting dollar-backed digital tokens, known as stablecoins, into law last year. Democrats, however, have argued that Trump's family's crypto profits create a conflict of interest.

The cryptocurrency industry spent more than $119 million backing pro-crypto candidates during the 2024 election cycle in hopes of advancing both the Clarity Act and stablecoin legislation.

Passage of the bill would also represent a setback for banks, which have sought to limit provisions allowing crypto companies to compete for deposits by offering rewards on customer stablecoin holdings.

Trump, who courted support from the cryptocurrency industry during his election campaign and whose family has profited from its own digital token, has made crypto reform a priority during his second administration. Reuters has previously reported that the White House has also been pushing for the legislation.

Trump disclosed in June that he earned more than $1.4 billion last year from his family's cryptocurrency ventures.

Democrats continue to seek stricter restrictions on cryptocurrency businesses linked to government officials, and negotiations over those provisions remain ongoing.