Crypto: The Senate Schedule Tightens for the CLARITY Act

The most anticipated crypto bill in the United States is losing ground. Galaxy Digital now estimates the chances of adopting the CLARITY Act at 60%, down from 75% previously. The cause: a U.S. Senate facing an increasingly busy schedule.

The CLARITY Act Loses Momentum in Washington

The research director at Galaxy Digital, Alex Thorn, is revising downward his estimates regarding the adoption of the crypto bill Clarity Act. He points to the lack of available days before the August parliamentary recess.

Delayed a month ago, the crypto bill still needs to:

• obtain 60 votes in the Senate;
• go through debates and amendments in plenary session;
• be harmonized with the Agriculture Senate committee’s version;
• pass through the House of Representatives.

However, the Senate has lost several weeks managing other priorities. This notably includes funding for ICE and border patrols. Added to this is the failure to reauthorize FISA Section 702, which was rejected by 47 votes to 52. This now monopolizes the agenda for the coming week.

As a result, the useful window before August shrinks to a few days in July. Not enough time for a crypto bill as complex as this, without clear commitment from Senate leader John Thune.

Beyond Time, Political Blocking Points Persist

Democrats, led by Senator Ruben Gallego, are demanding ethical provisions related to conflicts of interest. Other senators want strengthened guarantees against money laundering and sanction-related risks.

Added to this is a major debate on stablecoins. Banks refuse to allow digital dollar issuers to offer passive yields to their holders. They believe this would compete with bank deposits without the applicable regulatory constraints.

That’s not all! JPMorgan analysts also think that the midterm elections could delay crypto market structure reforms.

What Impact for the Crypto Sector?

The CLARITY Act aims to create the first comprehensive federal framework for digital assets in the United States. Specifically, it would clarify the respective roles of the SEC and the CFTC. The expected result: less legal uncertainty for issuers, exchange platforms, and crypto investors.

The bill already passed a crucial step on May 14th by being adopted in the Senate committee by 15 votes to 9. This sudden slowdown therefore directly challenges the ambitions of several leading political figures. We mainly cite Senator Cynthia Lummis, a fervent advocate of digital assets, who had set an ambitious target: to pass this structuring law before the Independence Day on July 4th. A promise that now seems out of reach!

For the crypto ecosystem, the stake also seems enormous. Without this crypto law, the legal uncertainty indeed persists. This could encourage innovative companies to flee the United States.

In any case, crypto investors will have to arm themselves with patience. Washington’s reaction in the coming weeks will determine whether the bill is simply postponed or permanently stalled.