Senate Hands Crypto Industry a Sept. 15 Deadline

Senate Majority Leader John Thune on Saturday (Aug. 8) pushed a procedural vote that could help the CLARITY Act move to the Senate floor in September. This cloture vote is to be held Sept. 15 and will signal whether the bill has a future, according to the report.

However, many analysts and lobbyists are skeptical about the CLARITY Act’s prospects because it still faces opposition from key Democrats, the Senate has many other items on its agenda, and Senate sessions are likely to be shortened due to November elections, the report said.

The report flagged a social media post by Sen. Cynthia Lummis, R-Wyo., who has been a key player in drafting and negotiating the CLARITY Act. In the post, Lummis said: “Death by 1,000 cuts is just as fatal as a bullet.”

It also quoted Cody Carbone, CEO of crypto trade group The Digital Chamber, saying the bill could still be advanced during the week of Sept. 14. Carbone said, per the report: “The fight is far from over.”

The Hill reported Sunday (Aug. 9) that the CLARITY Act’s supporters have long seen August as a key deadline in getting the legislation passed.

While the bill has a chance to advance in September, the Senate will have only a three-week session that month and faces a “lengthy to-do list,” the report said.

CoinDesk reported Saturday that the Saturday decision to start floor action on the CLARITY Act marked the furthest progress the bill has made so far, and prevented the bill from being declared dead, though its chances in September remain a longshot.

The CLARITY Act would provide the crypto industry with its first comprehensive rulebook, establishing when digital tokens are securities or commodities and whether they would be regulated by the SEC of the CFTC.

The crypto industry says that by offering the sector legal clarity, the legislation could increase the adoption of cryptocurrencies.

The banking industry has argued that yield-bearing stablecoins resemble bank deposits.