Crypto Market Structure Bill Delayed Amid Ethics Dispute

The CLARITY Act, which aims to provide clearer rules for digital asset markets, is unlikely to receive a Senate vote before the August recess. According to comments from Senate Majority Leader John Thune, the bill will not move forward in time for lawmakers to leave for their break. While this delay may be frustrating for the crypto industry, it does not mean that the bill is dead.

The bill, formally listed as H.R. 3633, is a key part of the effort to clean up the fragmented system of regulations that govern digital assets in the US. The SEC, CFTC, Treasury, and other agencies all have some level of authority over different aspects of the market, creating uncertainty over which assets are securities, commodities, and how exchanges should register.

The delay is due in part to a dispute over ethics provisions involving public officials and digital asset holdings. Some lawmakers want stricter rules to prevent public officials from holding or profiting from digital assets, while others see this as unnecessary or even politically motivated.