The U.S. Senate has postponed a vote on the Digital Asset Market CLARITY (Clarity for Payment Stablecoins and Digital Asset Market Structure) Act until after its August recess, dimming prospects for one of the cryptocurrency industry's most anticipated pieces of legislation this year.
The bill, which seeks to establish a comprehensive federal regulatory framework for digital assets and clarify whether cryptocurrencies fall under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), had been expected to reach the Senate floor before lawmakers left Washington for their summer break.
Barron's reported that Senate Majority Leader John Thune now plans to bring the legislation up in September, although the delay raises questions about whether Congress will have enough time to complete the legislative process before the end of the year.
The legislation remains one of the crypto industry's top priorities, with companies including Coinbase arguing that clearer rules are needed to encourage innovation while providing greater regulatory certainty for businesses and investors.
According to CoinDesk, Senate leaders have been forced to prioritize judicial nominations, government business and Russia sanctions legislation, leaving limited floor time for the crypto measure before lawmakers adjourned for recess.
The bill also continues to face political hurdles. It must secure at least 60 votes to overcome a Senate filibuster, meaning Republican supporters will need backing from several Democrats. At the same time, disagreements remain over ethics provisions related to President Donald Trump's cryptocurrency interests and concerns from some Republicans about provisions affecting banks and yield-bearing digital asset products.
The Wall Street Journal reported that Democratic lawmakers have pushed for stronger ethics restrictions following scrutiny of Trump's crypto-related business interests, while Republicans argue the current proposal already contains unprecedented safeguards.
The crowded legislative calendar has further complicated the bill's path.
Axios said Senate Republicans spent the final days before recess focused on a packed agenda that included government funding, election legislation and other priority measures, leaving little room to debate the CLARITY Act
