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The Senate’s long-awaited vote on the CLARITY Act won’t happen until September, and the crypto industry isn’t hiding its frustration.
Majority Leader John Thune filed a cloture motion late last week, setting up a procedural vote when lawmakers return from their August recess. That vote needs 60 votes to move forward — a bar that remains uncertain given unresolved disputes between the two parties. Still, the White House says the delay changes nothing about its commitment to getting the bill passed.
White House Says Deadline Still Stands
Patrick Witt, who leads the President’s Council of Advisors for Digital Assets, said Tuesday that the administration will keep negotiating with Democrats through the September vote. His message was blunt: there’s no more room to stall. The bill, which would create a federal framework for classifying digital assets as securities or commodities and set rules for trading platforms, has been sitting since the House passed it more than a year ago.
What’s Holding Things Up
Two sticking points remain unresolved. Democrats are pushing for tougher ethics rules aimed at crypto ventures tied to Trump, including his family’s World Liberty Financial and a memecoin launched just before his second term began. Meanwhile, banking groups are lobbying to close what they see as a loophole letting companies pay interest-like rewards to stablecoin holders — a practice traditional banks argue gives crypto firms an unfair edge in competing for deposits.
The Wall Street Journal’s editorial board weighed in ahead of the cloture filing, arguing that smaller banks would lose ground under the bill as currently written since they depend on deposit interest to stay competitive.
Also Read: Trump May Have to Sell Crypto Holdings Under CLARITY Act Ethics Rules
Industry Voices Frustration, but Odds Still Favor a Vote
Senator Cynthia Lummis didn’t mince words about her frustration with the delay, though she says the fight isn’t over. Coinbase’s Brian Armstrong and Faryar Shirzad called the holdup disappointing but signaled optimism that September brings resolution. Not everyone is worried — Bitmine’s Tom Lee pointed out that markets are more tuned into inflation and jobs data than the CLARITY timeline right now.
Prediction markets still lean toward action happening. Kalshi bettors give an 88% chance the Senate votes before October 1, though Polymarket odds on the bill actually becoming law this year sit much lower, around 26%. With midterms just 50 days out from the new vote date, the window for compromise is narrowing fast.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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