Clarity Act Stalls in Senate as Lawmakers Struggle with Disagreements

The Clarity Act, a bipartisan bill aimed at creating a federal framework for cryptocurrency oversight, is facing procedural delays in the US Senate. With only days left before the Senate's August recess, lawmakers are struggling to resolve disputes that have stalled negotiations.

Senate Majority Leader John Thune has yet to file cloture on the bill, a necessary step before a final vote can take place. The Senate is scheduled to recess for a month, leaving supporters of the measure with a limited window to advance the legislation before attention shifts to the November elections.

The bill's path forward is clouded by disagreements over ethics rules, state attorney enforcement powers, and anti-money laundering carve-outs. Democrats want stronger provisions, including enforcement authority for state attorneys general, while groups like the National Sheriffs' Association argue the legislation is too broad in its carve-outs.