US Senate to Decide Fate of CLARITY Act Crypto Framework

The CLARITY Act is set to face a crucial vote in the US Senate on September 15, where it will require at least 60 votes to proceed. This cloture motion will determine whether formal debate can begin, and will not decide the final content of the legislation.

The bill aims to provide a federal framework governing US crypto markets across the country, defining circumstances in which crypto-assets fall under securities regulation and assigning regulatory responsibilities to both the CFTC and SEC. The proposed framework would establish clearer lines between the two regulatory bodies, with the CFTC having jurisdiction over certain spot-market activities.

Heavy lobbying has taken place, with crypto firms and banking organizations pushing for the bill's passage due to conflicts regarding issues such as stablecoin incentives, deposits from banks, anti-money laundering policies, and regulatory authority. The crypto sector has spent more than $190 million on politics, with the industry wanting federal regulation on token classifications and trading platforms.

Despite bipartisan support, the Democratic critics have tried to demand more anti-money laundering provisions, and give the authority to state regulators. President Donald Trump favors the CLARITY Act, but 60 Senate votes are still necessary for its passage.