CLARITY Act Set to Face Senate Vote Before August Recess

Despite ongoing negotiations and a crowded legislative calendar, Senate leaders remain committed to bringing the CLARITY Act to a vote before the August recess. According to Senator Cynthia Lummis, Senate Majority Leader John Thune has kept a place for the crypto bill on the agenda 'for many, many weeks now.'

Lummis stated that lawmakers have only one more week in Washington before they leave for their summer break, and multiple nominations, discussions over a continuing resolution, and votes related to Iran and Russia-Ukraine sanctions are competing for limited floor time.

The revised ethics proposal submitted by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego could help unlock Democratic support for the bill. This compromise would allow state authorities to enforce a ban on federal officials issuing or sponsoring digital tokens, instead of placing enforcement solely with the U.S. Attorney General.

However, the CLARITY Act still faces a 60-vote Senate test, and Republicans control only 53 seats in the chamber. The House passed its version of the bill by a 294-134 vote last year, but this proposal seeks to divide oversight of digital assets between the Securities and Exchange Commission and Commodity Futures Trading Commission.