Uncertainty continues regarding the CLARITY Act, one of the most comprehensive legislative proposals to regulate the cryptocurrency sector in the US.
While the Clarity Act, also known as the Transparency Act, is eagerly awaited to pass the Senate, reports from the US indicate that the Clarity Act is not on the Senate’s agenda today.
With the US Congress heading into its month-long August recess, hopes for the Clarity Act are dwindling. This is because the Clarity Act was not included in the US Senate’s voting schedule announced on August 3rd.
This reduces the chances of Senate leaders bringing the bill to the floor before the Senate recess, scheduled for August 10.
The Senate’s August 3rd schedule includes a procedural vote on government funding regulation H.R. 6500, instead of CLARITY. However, the current calendar does not show any allocated time in the General Assembly or a voting process for the CLARITY Act.
According to Senate rules, there is a lengthy procedure that must be followed before the CLARITY Act can reach a vote in the General Assembly.
Democratic Support is Critical!
The bill needs 60 votes to pass in the Senate. Even if all Republicans support it, it still needs the support of at least 7 Democratic senators.
However, some Democratic senators argue that the publicly released CLARITY draft is insufficient in terms of consumer protection, ethical guidelines, and conflicts of interest in the crypto sector. Therefore, they are calling for further negotiations.
CLARTIY If Not Approved Now, When Will It Be Approved?
Experts say that if the law is not passed in August, it is more likely to be delayed until September. However, some predict that due to the November congressional elections, US senators will not be able to focus intensely on any legislation and will concentrate on the elections. Therefore, CLARITY suggests that the approval of the law may be delayed until 2027.
In conclusion, the CLARITY Act has not been dropped from the Senate agenda, but it is very close to reaching a final general vote before the August 10 recess. The bill’s fate remains dependent on whether senators can make swift procedural moves and secure the necessary Democratic support.
*This is not investment advice.
