Clarity Act Fails to Win Over Democrats Ahead of August Recess
The fate of the Clarity Act hangs in the balance as Senate Republicans seek Democratic support to advance the bill through the chamber's cloture process. The act needs at least 60 Senate votes, but with only 53 GOP seats, Republicans are dependent on Democratic backing.
Seven Democratic senators have expressed concerns that the revised bill still falls short on several policy issues, including political ethics, consumer protection, and illicit finance. Senator Thom Tillis has been leading bipartisan negotiations to strengthen ethics rules, but his proposal is not yet agreed upon by all parties.
The National Fraternal Order of Police has endorsed the revised Clarity Act after lawmakers addressed its concerns about the Blockchain Regulatory Certainty Act. However, the support does not resolve broader disagreements over when a DeFi service should qualify as decentralized and when people controlling a protocol should face financial regulations.