The CLARITY Act, which aims to establish a regulatory framework for the U.S. virtual asset market, is scheduled for a cloture vote in the Senate on the 15th (local time). However, industry experts predict that passing the bill this year will be challenging due to ongoing disagreements over key provisions.
According to foreign news reports on Tuesday, the Senate plans to hold a cloture vote on the CLARITY Act on September 15. Cloture is a procedure to end debate on a bill and move to the final voting process.
Initially, lawmakers aimed to address the bill before the August recess. However, delays have occurred, with key points of contention emerging, such as allowing interest on stablecoin holdings and ethical provisions related to former President Donald Trump and his family’s involvement in virtual asset businesses.
The CLARITY Act seeks to delineate the supervisory authority of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over virtual assets. It also aims to establish registration requirements for virtual asset businesses and anti-money laundering (AML) regulations. This legislation is considered crucial for resolving regulatory uncertainties in the U.S. virtual asset market.
In the past, debates have persisted over whether the SEC or the CFTC should hold supervisory authority based on the nature of virtual assets. The CLARITY Act focuses on clarifying the jurisdictions of both agencies to create a more defined regulatory framework for the virtual asset market.
One of the main issues in processing the bill is whether to allow interest payments to stablecoin holders. Ethical provisions aimed at preventing conflicts of interest, given former President Trump and his family’s involvement in virtual asset businesses, are also seen as variables in the legislative process.
However, industry insiders express skepticism about the likelihood of final legislation this year, especially with the vote schedule already delayed and the midterm elections approaching.
John Darsie, Chief Executive Officer (CEO) of SALT, stated that personally, he’s somewhat pessimistic about the passage of the CLARITY Act. The chances of this bill passing are low in the lead-up to the midterm elections.
Changes in the political landscape also pose a potential risk. Former New York Governor Andrew Cuomo warned that if the CLARITY Act does not pass before the midterm elections and the Democrats gain control of the House, conflicts over virtual asset regulations between Congress and the administration could persist for an extended period.