CLARITY Act Faces Squeeze Time as Senate Returns from Recess
The US Senate's delay on the Digital Asset Market Clarity (CLARITY) Act has created a narrow window for its passage into law. Majority Leader John Thune filed cloture for the bill to go to the floor for consideration just before the Senate broke for recess last week.
The chamber will return from recess on September 14, but only have 14 days scheduled to be in session before breaking again for the November election and another 22 days before the end of the year. This 36-day window has left many crypto industry advocates expressing optimism for the bill's chances in Congress.
However, lawmakers have not announced any deal on the provisions still at issue, including ethics language affecting US President Donald Trump's ties to digital assets and additional restrictions for crypto companies offering stablecoin rewards.
The Senate has had 13 months to consider the CLARITY Act since it was passed by the House of Representatives last year. In that time, the chamber faced more than one government shutdown, pushback from industry leaders, and opposition from many Democrats saying that the then-version of the bill would enable what they called Trump's 'crypto corruption.'
US regulators are looking to financial agencies like the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) for regulatory clarity. The legislation was expected to give the CFTC more authority to oversee and enforce regulations affecting digital assets, but with the law still under consideration, agencies have signaled they will act even if Congress won't.