WASHINGTON — Senate Majority Leader John Thune said he does not expect the Senate to pass the CLARITY Act before lawmakers leave for their August recess, casting doubt on the prospects for digital asset market-structure legislation this year, according to Punchbowl News.
Thune (R-SD), told reporters that the legislation is unlikely to reach the Senate floor before Congress adjourns for its summer recess, after which lawmakers are expected to focus on the November midterm elections, Punchbowl News reported.
The biggest obstacle remains disagreements over ethics provisions tied to President Donald Trump’s involvement with cryptocurrency.
Senate Republicans recently unveiled a revised, 616-page version of the CLARITY Act that would prohibit federal officials, including the president, from issuing or sponsoring digital assets. Under the proposal, enforcement authority would rest solely with the Department of Justice rather than the Securities and Exchange Commission or the Commodity Futures Trading Commission.
The Democrats’ Argument
Democrats have argued the revised language does not adequately address concerns that Trump could continue to profit from cryptocurrency ventures, making it more difficult for Republicans to secure the bipartisan support needed to overcome a Senate filibuster.
Sen. Ruben Gallego (D-AZ), who was one of only two Democrats to support an earlier version of the legislation in the Senate Banking Committee, criticized the latest proposal, calling it “not a serious effort,” according to Punchbowl News.
Despite the legislative uncertainty, cryptocurrency industry groups are continuing to push for Senate action.
In a joint letter to Thune and Senate Minority Leader Chuck Schumer (D-NY), the Crypto Council for Innovation, the Blockchain Association and The Digital Chamber urged Senate leaders to begin floor consideration of the bill while negotiations continue.
The organizations said the legislation would establish a federal regulatory framework for digital assets, arguing that clear rules are needed to protect consumers, provide market safeguards and support innovation as traditional financial institutions, asset managers and payment companies increasingly adopt blockchain technology.
Surprise: Not All Agree
Not everyone in the industry agrees with Thune’s assessment of the bill’s outlook.
Kristin Smith, president of the Solana Policy Institute and former chief executive officer of the Blockchain Association, said in a post on X that discussions with lawmakers suggest there remains “a clear path” to passing the CLARITY Act before the Senate’s Aug. 7 recess, according to Punchbowl News.
