New Delhi, May 15 -- The Senate Banking Committee advanced a landmark digital asset market structure bill Thursday after months of negotiations, signaling fresh momentum for the long-stalled measure.

The so-called Clarity Act would establish the Commodity Futures Trading Commission as the primary regulator for large parts of the crypto industry while the Securities and Exchange Commission would retain authority to oversee digital securities. The bill now heads to the Senate floor, where lawmakers will need to combine it with another version from the Agriculture Committee, which has jurisdiction over the CFTC.

The bipartisan committee vote will likely be cheered by the crypto industry, which has long-sought to create clear rules for the ...