US Senate Prepares for Showdown on Crypto Legislation as Clarity Act Looms

The US Senate is gearing up for a showdown on crypto legislation as it prepares to vote on the CLARITY Act, which aims to create a federal market structure for digital assets. However, the bill's path to passage remains uncertain, as it still needs 60 votes to invoke cloture.

The CLARITY Act seeks to settle the long-running turf question between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill would split oversight between the two agencies, providing much-needed clarity for crypto firms operating in the US.

However, negotiations have stalled over an ethics provision aimed at limiting how senior officials can profit from crypto ventures. President Donald Trump had reportedly agreed to ethics language brokered by Senator Cynthia Lummis, but Democrats and some Republicans pushed back against it.