The U.S. Senate has delayed a vote on the Digital Asset Market Clarity Act, prioritizing a Russia sanctions bill and federal nominations before its August recess. The delay jeopardizes the crypto regulation bill's passage this year, as lawmakers remain deadlocked over an ethics provision aimed at President Donald Trump's extensive cryptocurrency activities. The bill requires 60 votes to advance in the chamber.
Clarity Act legislative timeline
- ▪Even if the Clarity Act passes the Senate, it must return to the House of Representatives for another approval
- ▪The current draft of the bill is 616 pages and merges versions from the Senate Banking and Agriculture Committees
- ▪The delay makes a vote on the Clarity Act unlikely before the final week of the session, ahead of the August 8 summer recess
- ▪The U.S. Senate has delayed consideration of the Digital Asset Market Clarity Act to prioritize other legislative business
- ▪The Senate's schedule is also occupied by the funeral of Senator Lindsey Graham, to whom the Russia sanctions bill is now dedicated
- ▪Senate Majority Leader John Thune is prioritizing a Russia sanctions bill, federal nominations, and government funding
- ▪If the bill does not pass before the recess, its next likely opportunity for consideration will be in September
Ethics provision debate
- ▪Democrats are demanding a more binding ethics provision, rejecting a proposal from President Donald Trump they deemed insufficient to curtail his crypto holdings
- ▪A major unresolved issue blocking the bill is a contentious ethics provision that would bar senior government officials from backing crypto projects
- ▪Democrats object to the current ethics provision because they do not trust the Department of Justice to enforce it against a sitting president
Trump cryptocurrency conflicts
- ▪The ethics provision debate is centered on President Donald Trump, who reportedly made $1.4 billion from cryptocurrency last year
- ▪A rejected proposal from President Trump included a ban on his crypto activities through Jan. 20, 2029, with enforcement by the Department of Justice
Bipartisan disagreements
- ▪Senator Elizabeth Warren stated the bill "should be dead on arrival," citing concerns over investor protection and national security
- ▪A previous compromise in the bill, negotiated with the banking lobby, limits stablecoin issuers from offering interest-like returns for simply holding the assets
- ▪New York Attorney General Letitia James opposes the legislation, arguing it would limit states' ability to regulate crypto scams
Senate procedural requirements
- ▪The bill needs 60 votes to invoke cloture and move forward in the Senate
- ▪Senate procedure generally limits the chamber to debating one disputed bill at a time, preventing the Clarity Act from advancing simultaneously
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