CLARITY Act Still Has Path Through Senate Despite Looming Deadline

The White House's crypto advisor, Patrick Witt, remains optimistic about the CLARITY Act's chances despite the looming deadline for its passage through the Senate. According to Witt, support from Republican senators is close to being unanimous, with over 50% of them backing the bill.

Negotiations between lawmakers are ongoing, focusing on key issues such as stablecoin rewards and crypto ethics rules. A compromise has been reached that prohibits passive 'idle yield' while allowing rewards linked to customer activity. President Trump has also agreed to restrictions preventing federal officials from issuing or sponsoring digital assets, although Democrats are seeking additional safeguards.

Witt warned that passing major legislation becomes increasingly difficult after the midterm elections, particularly during a lame-duck Congress or later in a presidential administration. He emphasized that 'we have the moment right now' and urged lawmakers to act quickly. If the bill fails, Witt noted that the SEC and CFTC could pursue aggressive rulemaking, including an SEC innovation exemption and coordinated crypto regulations across the two agencies.