Following the U.S. Senate's return in September, a vote is expected to end debate on the Cryptocurrency and Digital Asset Market Structure Act (CLARITY), but it still faces significant hurdles on the path to passage.
Shortly before the Senate adjourned for a month-long recess last week, Majority Leader John Thune filed a cloture motion on the market structure bill to bring it to the floor for consideration. Lawmakers will return from recess on September 14th, but they have only 14 scheduled session days before the next break for the November elections, and another 22 days before the end of the year.
Within this 36-day window for passing CLARITY, many crypto industry advocates have publicly expressed optimism about the bill's prospects in Congress, but lawmakers have yet to announce agreement on many provisions that remain contentious. These include ethics provisions addressing U.S. President Donald Trump's ties to digital assets, as well as additional restrictions for crypto companies offering staking rewards in stablecoins.
The Senate has had 13 months to consider CLARITY since the House passed it last year. During that time, the Senate has faced several government shutdown threats, opposition from industry leaders, and pushback from many Democrats who argued the then-version of the bill enabled what they called Trump's "crypto corruption."
Related: Crypto Industry Will Be 'Just Fine' If CLARITY Fails: Chris Perkins
If the Senate holds a cloture vote in September, lawmakers will still have only a few days to resolve issues related to the bill before a potential floor vote and the pre-election recess. After November, when 33 Senate seats and all 435 House seats are up for grabs, the midterm election results could complicate the bill's discussion, as many members of Congress may leave their posts in 2027.
Will U.S. Regulators Act Amid Legislative Uncertainty?
With the market structure bill once again in limbo for at least a month, many experts are looking to financial agencies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for regulatory clarity. The bill is expected to grant the CFTC greater authority to oversee digital assets and enforce relevant rules, but while it remains under consideration, the agencies have indicated they will act if Congress does not.
In a July interview, SEC Chair Paul Atkins stated that the agency "stands ready, willing, and able to write rules" to regulate cryptocurrencies if Congress does not pass CLARITY. Similarly, CFTC Chairman Michael Selig said in April that the commission "stands ready to take on the responsibility" of overseeing crypto markets, though his comments were contingent on lawmakers passing the market structure bill. Both agencies have taken steps to coordinate oversight of financial markets.
Magazine: BIP-110 Ended with a Whimper, CLARITY Vote Delayed: Hodler's Digest, Aug. 9
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