CLARITY Act Hits 60-Vote Hurdle in Senate as Bipartisan Opposition Grows

The CLARITY Act is facing a crucial Senate vote on September 15th as it needs to clear a 60-vote procedural hurdle. The bill aims to regulate the crypto market structure, but its prospects are uncertain due to growing opposition.

A bipartisan group of 18 state attorneys general has urged Congress to reject the bill, with New York's Attorney General Letitia James leading the coalition. James and her colleagues have expressed concerns that the bill would embolden scammers and strip attorneys general of their authority to protect investors.

The Progressive Policy Institute (PPI) also opposes the legislation, arguing that it lacks sufficient safeguards against money laundering, ethics issues, and stablecoin-related risks. PPI's Paul Weinstein Jr. stated that the bill still falls short in providing robust money-laundering and ethics safeguards needed to address illicit activity and corruption.

Republicans have revised the bill with stronger ethics rules, state attorney general enforcement powers, and a temporary mechanism addressing concerns about stablecoin competition with bank deposits. However, these changes did not end the opposition, leaving the bill's future uncertain.