US Senate Pushes Clarity Act Vote to September

Senate Republican leaders are expected to leave for their August recess without voting on crypto market structure legislation, delaying consideration of the bill until at least September, according to a report from Politico. 

Senate Majority Leader John Thune confirmed that the chamber would not vote on the legislation before the recess, citing Democratic opposition and saying it would be prioritized when senators return next month. 

“The Dems are insistent on no Clarity vote,” Thune said, according to comments his office provided to Cointelegraph. “I worked with sponsors of the bill. Senator Lummis was great, and we’re getting that queued up first thing when we come back.”

The postponement leaves one of the crypto industry’s top legislative priorities unresolved and compresses the Senate’s timetable for advancing the bill. Without sufficient Democratic support, Republicans may struggle to secure the 60 votes generally needed to overcome a filibuster.

September delay narrows path for CLARITY Act

Thune’s remarks come after comments from Senate Banking Committee Chair Tim Scott, who said on Thursday the chamber should hold its first vote on the CLARITY Act before the recess “without any question.” 

Scott said Thune still had time to schedule the procedural vote and that Republicans were gaining support for it. 

The CLARITY Act would establish a federal framework for digital asset markets and clarify how oversight is divided between the US Securities and Exchange Commission and the Commodity Futures Trading Commission.

Citing three people with knowledge of the matter, Politico reported that the CLARITY Act lacks Democratic support. Negotiations remained underway.

Thune may still file cloture before the recess. This procedural step could position the bill for a vote when senators return in mid-September, but it would not constitute a vote on the legislation, according to two people cited by Politico.

Cointelegraph also asked Thune’s office to confirm whether he intended to file cloture before the Senate leaves for recess, but has not received a response to the question by time of publication. 

The sources said Democrats have declined to approve a time agreement that would expedite the Senate’s remaining pre-recess business and allow the crypto bill to reach the floor. 

According to the report, Republican leaders would need unanimous consent from all 100 senators to complete the outstanding items without extending the session deep into next week.

Related: CLARITY Act failure could send crypto valuations lower: Bernstein