Gallego Says Congress Can Still Advance CLARITY Act

The U.S. Congress is considering the CLARITY Act, a crypto market structure bill that would divide regulatory authority over digital assets between the SEC and CFTC. The measure is seen as a cornerstone of a comprehensive U.S. crypto regulatory framework. Congress must vote before its August recess or face a significant delay, making the next few weeks a decisive window for the bill and a focus for markets and the industry.

In the latest development, three Democratic senators publicly opposed the CLARITY Act on ethics grounds, questioning whether public officials could profit from their own crypto holdings. With a vote expected in the coming days, the opposition has become the biggest uncertainty hanging over the bill’s passage. Despite continued lobbying by the banking industry, Congress currently has no plans to reopen negotiations on restrictions on stablecoin yields, leaving the relevant provisions likely to remain unchanged in the near term.