The CLARITY Act, a bill aimed at regulating the virtual asset market in the U.S. Senate, has hit a roadblock due to partisan disagreements. Democrats have stated they will only support the bill’s review after reaching consensus on critical issues, including ethics regulations, anti-money laundering (AML) measures, and revisions to the bill’s language.
On Wednesday, cryptocurrency news outlet The Block reported that Republican Senate Minority Leader John Thune had not initiated the cloture process for the CLARITY Act. With the Senate set to begin its month-long summer recess on August 8, the bill’s fate remains uncertain. However, sources indicate that Thune intends to continue bipartisan negotiations while pushing for procedural votes.
Democrats are prioritizing the establishment of safeguards to prevent conflicts of interest related to former President Donald Trump and his family’s virtual asset businesses. They also insist on strengthening anti-money laundering and consumer protection regulations, as well as incorporating provisions from the Senate Agriculture Committee’s draft into the final bill.
Investment bank TD Cowen estimates that securing the required 60 votes for the CLARITY Act’s passage in the Senate is challenging, potentially falling short by up to 10 votes. They suggest that to process the bill before recess, the Senate would need to either postpone the break or expedite procedures through unanimous consent. However, both options are deemed unlikely to materialize.