Clarity Act Delayed as Senate Prioritizes Russian Sanctions

The U.S. Senate has put the Digital Asset Market Clarity Act on hold due to limited floor time, which is being prioritized for Russian sanctions legislation and federal nominations.

This delay comes as the chamber's summer break is set to start August 8th, squeezing the timeline for the crypto industry's central policy effort. The Clarity Act aims to create a regulatory framework for digital assets in the United States, spelling out which agencies oversee what.

Majority Leader John Thune has stated that he hopes to get to the Clarity Act before the break but acknowledges that leadership will have to 'see where the votes are.' The bill is not yet ready for a vote due to ongoing negotiations over a contentious ethics provision, which includes a ban against senior government officials backing crypto projects.

A compromise on this provision remains elusive, with Democrats pushing for tighter restrictions and White House officials pointing to existing ethics constraints. The New York Attorney General has added pressure, urging Congress to tighten the bill and warning that it would weaken states' ability to police the crypto industry for fraud.