White House Stands Firm on CLARITY Act Despite Low Passage Odds

Patrick Witt, White House crypto adviser, expressed optimism about the Digital Asset Market Clarity Act (CLARITY Act), saying he remains 'truly optimistic and bullish' on its passage. The bill would establish a statutory framework for digital assets, defining roles for the SEC and CFTC. Witt stated that the White House plans to meet with Democrats before the Senate's September 15 cloture vote to address disagreements.

The CLARITY Act aims to split regulatory responsibilities between the CFTC and SEC, giving the CFTC oversight of qualifying digital commodities. However, lawmakers are still debating stablecoin rewards, ethics provisions, and software-developer protections. The bill also includes restrictions on certain digital-asset activities involving federal officials and their spouses.

The Senate's September 15 cloture vote will be a test of momentum for the CLARITY Act. If it clears this hurdle, it would still need to pass in the Senate, resolve differences with the House version, and receive the president's signature.