Clarity Act Loses Momentum in Senate

The Digital Asset Market Clarity Act, a comprehensive crypto regulation bill in the US, has lost momentum as Senate Majority Leader John Thune prioritizes other legislative matters. The bill's prospects have dropped to 30%, according to Galaxy Research, down from 50% just a month ago.

The Senate calendar has become crowded, and any serious floor debate won't happen until September at the earliest. A new draft of the bill includes an ethics provision with a sunset clause set for 2029, but key Democratic senators have expressed concerns over ethics enforcement, illicit finance safeguards, and consumer protections.

Major financial firms like BlackRock, Fidelity, and Goldman Sachs have endorsed the legislation, emphasizing the need for a clear market structure framework. Without it, they are navigating a patchwork of SEC enforcement actions, CFTC jurisdictional claims, and state-level rules that sometimes contradict each other.