Clarity Act Update Stalls Amid White House Silence on Bipartisan Ethics Proposal

The Clarity Act update remains uncertain as Senate leaders approach their final legislative days before the August recess. The White House's silence on a revised bipartisan ethics proposal has raised new questions over the Senate vote.

Lawmakers are continuing to negotiate the required bipartisan support to move the legislation through the Senate. However, Senate records do not show that Majority Leader John Thune had filed cloture on the bill as of August 5. This means no procedural vote on the Clarity Act has been scheduled.

The biggest hurdle to advancing the crypto bill this week is still the ethics negotiations. Democrats have stated they will not support the current legislation without stronger restrictions on elected officials' crypto interests. The White House's lack of response to a revised bipartisan ethics proposal submitted last week by Senators Thom Tillis and Ruben Gallego has increased uncertainty around the legislation's path through the Senate.

Midterm politics and bipartisan support will shape the future of crypto regulations. Fairshake, a crypto-focused political network, reported nearly $129 million in combined cash on hand as of June 30. Several Washington lobbyists believe this network is waiting to see how senators vote before making larger spending decisions.