The CLARITY Act has been making its way through Congress, but it keeps hitting roadblocks. The latest came this week when Senate leadership decided to push a Russia sanctions bill ahead of the crypto regulation package on the calendar. That decision effectively stole the CLARITY Act's spot, and with the Senate's summer recess just a week away, time is running out.
The Russia sanctions legislation was deemed urgent due to ongoing geopolitical tensions, giving it priority over the crypto bill. Senate leaders viewed the sanctions package as time-sensitive, whereas the CLARITY Act could wait until the autumn session. This scheduling conflict underscores the difficulty crypto legislation faces when competing with national security measures on a crowded congressional calendar.
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The CLARITY Act, designed to create a national regulatory framework for cryptocurrencies, has been a priority for many industry advocates who argue that clear rules are needed to foster innovation and protect investors. However, the bill's progress has been hampered by political scheduling and disagreements over additional provisions, such as the ethics language that was added when the Senate Financial and Agriculture committees merged their versions.
That line about ethics language is a big reason the bill is stuck. When the CLARITY Act was merged with legislation from the Senate Financial and Agriculture committees, it included ethics language for the first time. The disagreement over the ethics provisions continues to be a major barrier, preventing the bill from securing the backing of Senate Democrats needed for its approval.
Without a deal on the ethics language, there is no vote. And without a vote before next week, the whole thing gets pushed to the fall. Melker offered a sliver of hope: "Maybe there's still that 5% chance that it will." But 5% is not a number that inspires confidence.
Senator Thune, who controls the legislative schedule, has not given the CLARITY Act a new date. Even if the Senate somehow finds room to vote next week - which is its last window before the break - the bill would still need to clear the House and get signed by the president. And the White House has added its own twist. The president has said he will not sign the CLARITY Act until a separate voter registration act passes first.
So the chances are slim. Scott Melker, who broke the news on his show, put it bluntly: "I would say that the odds are still extremely low. We haven't even gotten an agreement on ethics language."
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