CLARITY Act Delay Gives SEC Room to Rethink Crypto Rules

The CLARITY Act's September Senate vote has been delayed after lawmakers left Washington without holding a key procedural vote. The delay gives negotiators several weeks to address the disputes blocking the bill, which includes disagreements between Republicans, Democrats, and the White House on issues such as ethics requirements involving President Donald Trump's crypto-related business interests.

At least two Republican senators, Josh Hawley (R-Mo.) and Jerry Moran (R-Kan.), have indicated they cannot support the CLARITY Act in its current form. The banking industry has also argued that the bill does not provide enough protection against stablecoin-driven deposit flight, adding another layer to the negotiations.

Meanwhile, the Securities and Exchange Commission is preparing its own regulatory action on crypto assets. The SEC will hold an open meeting on August 14 at 10 a.m. ET to consider proposing rules covering certain investment contracts involving crypto assets.