CLARITY Act Vote Looms: Senate Set to Decide Fate of US Crypto Rules

The US Senate is set to vote on September 15 on the CLARITY Act, which aims to establish lasting rules for the digital assets industry. The bill has been years in the making and has undergone numerous revisions, with its latest draft addressing issues such as decentralized protocols, DeFi provisions, and stablecoin rewards.

Crypto businesses have been waiting for Washington to settle on how their industry should be regulated, but the next hurdle comes down to 60 votes. The bill's supporters are still trying to assemble those votes after months of negotiations, with Senator Cynthia Lummis releasing updated language that incorporates over 114 provisions requested by Democratic colleagues.

If the Clarity Act fails, Democrats will own what comes next: more than 100 Democratic-directed changes wasted, consumers without federal protection, no disclosure rules, and no delisting requirements for bad actors. The industry's push is centered on achieving durable legislation that can survive a change of administration, unlike rulemaking.

The Senate draft would expand CFTC oversight of digital commodity markets and establish rules covering securities-related activity, disclosures, intermediaries, custody, and qualifying network tokens. But a breakthrough would not guarantee a broad rally, as new registration obligations and tighter rewards restrictions could hurt particular business models.