U.S. Crypto Bill Stalls Over Democrats’ Ethics Concerns
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.
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2 original reportsThe Backstory
The history behind this eventHouse Financial Services Chair Optimistic Crypto Bill Will Pass Senate
The U.S. House Financial Services Committee is advancing a crypto market structure bill aimed at clarifying regulatory authority over digital assets and addressing differences in the rules governing stablecoin issuers and banks. Congressional approval would give the industry a clearer legal framework, affecting how cryptocurrencies are issued and traded in the United States and how financial institutions participate in the market.
Committee Chairman French Hill recently said the market structure bill was a major priority and expressed optimism that it would pass the U.S. Senate. Reports did not disclose a voting date, vote count or any related financial amount. The next key test is whether senators can reach consensus on the regulatory differences between stablecoin issuers and the banking industry and set a timetable for consideration and a vote.
US Senators File More Than 100 Amendments to Crypto Market Structure Bill
The US Congress is advancing the CLARITY Act, which seeks to define the respective authority of the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital assets. The bill has implications for trading platforms, stablecoins and developer liability, but the Senate Banking Committee must first resolve regulatory disagreements before sending it to the full Senate for a vote.
Senators filed more than 100 amendments ahead of the committee's May 14 markup. Democratic Senator Elizabeth Warren submitted more than 40 proposals covering stablecoin yield, protections for software developers and ethics rules for public officials, including provisions targeting Trump. Committee Chairman Tim Scott declined to hold a separate vote on a banking industry-backed proposal to restrict yield.
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