CLARITY Act Nears Senate Showdown: Crypto Industry on Brink of Lasting US Rules
The Digital Asset Market Clarity Act (CLARITY) is on the cusp of a crucial vote in the US Senate, which could either propel it forward or deal another blow to the effort to establish lasting crypto rules. With the midterm elections approaching, the industry has been eagerly waiting for a federal framework that would give businesses and investors greater confidence to commit capital.
The bill's supporters still need 60 votes to clear the procedural test on September 15, and negotiations are expected to continue through the weekend. Senator Cynthia Lummis released updated language last week, incorporating over 114 provisions requested by Democratic colleagues. The latest revisions address registration requirements for non-decentralized protocols, DeFi provisions, and credit unions' authority in digital asset activities.
However, the road ahead remains uncertain, with Democrats opposing stronger restrictions on senior officials' ability to profit from cryptocurrency businesses. Senator Elizabeth Warren argued that the bill inadequately protected investors, the financial system, and national security, calling it 'dead on arrival.'
The battle over stablecoin rewards has also become a central fault line in the negotiations. Crypto platforms have their own interests at stake, with restrictions potentially weakening the appeal and economics of their stablecoin products.