Crypto Lobby Passes Big Test With Major Legislative Fights Ahead

Crypto lobbyists notched a victory Thursday when the Senate Banking Committee gave a bipartisan nod to an industry-backed regulatory bill, but they’re gearing up for tangles ahead.

The panel approved the measure on a 15-9 vote, with two Democrats, Ruben Gallego (Ariz.) and Angela Alsobrooks (Md.), joining the panel’s Republicans. Banking industry lobbying groups said in a statement after the vote they would continue to push for a “tightening” of a provision dealing with interest-like rewards for holding stablecoin, a mega fight between the two industries.

The bill is the Banking panel’s long-awaited compromise as it moves to regulate cryptocurrencies, ...