WASHINGTON — Prospects for congressional passage of sweeping cryptocurrency market-structure legislation are becoming increasingly uncertain after the Senate left Washington for its five-week August recess without voting on the CLARITY Act, according to multiple reports.
As the CU Daily reported earlier, and as Reuters further reported, Senate Majority Leader John Thune (R-SD) took a procedural step Saturday, Aug. 8, that could allow the legislation to reach the Senate floor when lawmakers return in September. A cloture vote is expected Sept. 15 and could determine whether the measure has enough support to move forward.
The legislation still faces significant obstacles, Reuters noted. Key Democrats remain opposed, lawmakers will return to a crowded legislative agenda, and Senate sessions are expected to be shortened as the November elections approach.
Sen. Cynthia Lummis (R-WY), a central figure in negotiations over the legislation, expressed frustration with the delays in a social media post cited by Reuters.
“Death by 1,000 cuts is just as fatal as a bullet,” Lummis wrote.
‘Fight Far From Over’
Cody Carbone, CEO of crypto industry trade group The Digital Chamber, was more optimistic, telling Reuters the legislation could still move forward during the week of Sept. 14.
“The fight is far from over,” Carbone said.
The Hill reported that supporters had long viewed August as an important deadline for advancing the legislation. Although the bill could still move forward in September, senators are scheduled to be in session for only three weeks that month and face what The Hill described as a lengthy list of other legislative business.
Uncertain Prospects
CoinDesk, meanwhile, reported that the Senate’s decision to begin the process for floor consideration represented the furthest the CLARITY Act has advanced and kept the legislation from effectively being declared dead. Its prospects in September, however, remain uncertain.
As the CU Daily has reported, the legislation would create the first comprehensive federal regulatory framework for the cryptocurrency industry, including establishing when digital tokens should be treated as securities or commodities and determining whether they fall under the jurisdiction of the Securities and Exchange Commission or Commodity Futures Trading Commission.
Opposing Views
Crypto industry supporters contend that providing greater legal and regulatory certainty could encourage broader adoption of cryptocurrencies.
The financial services industry, including credit unions, meanwhile, has raised concerns about stablecoins that pay yield to holders, arguing that such products can resemble bank deposits and potentially compete with traditional deposit accounts.
The Sept. 15 cloture vote is expected to provide the next major test of whether supporters can assemble enough votes to advance the CLARITY Act as Congress enters a shortened pre-election legislative calendar.
