Clarity Act's Make-or-Break Vote Looms as Crypto Industry Faces Regulatory Hurdles
The Clarity Act is facing a crucial Senate vote on Tuesday as it attempts to establish a new regulatory structure for cryptocurrencies and digital assets. The bill, which has been stalled in the Senate for months, cleared the Senate Banking Committee in May but needs at least seven Democrats to support it to escape the filibuster.
However, banks are warning they cannot support the bill unless it includes a fix to stop interest-like payments on stablecoins, which they say could cause deposit flight. Meanwhile, some Democrats have expressed concerns about ethics language and preventing officials like President Donald Trump and his family from profiting from crypto ventures.
Despite these challenges, supporters of the bill are hopeful that they can scrape enough support to keep it alive. Senate Majority Leader John Thune has scheduled the preliminary vote just before senators left for their August recess, with many Democrats saying that this is a put-up-or-shut-up moment for the crypto bill.
Coinbase CEO Brian Armstrong said on CNBC Thursday that regulation will be coming for crypto regardless of the vote tally, and that the legislation is ready to be supported by the Senate. However, the White House has also teased further concessions on ethics language and other issues if the Senate clears the preliminary vote.