US Senate Puts Off CLARITY Act Vote, Casting Doubt on Passage Before August Recess

The US Senate has put off a vote on the CLARITY Act, a cryptocurrency market structure bill.

CoinDesk reported on July 27 that Senate Majority Leader John Thune first moved ahead with confirmations for federal appointments and is now pushing a Russia sanctions bill. That has bumped the CLARITY Act off the Senate floor schedule for the time being.

The Senate must clear cloture and waiting-period requirements before taking up contested legislation. With multiple high-profile bills competing for floor time, a CLARITY Act vote appears unlikely before work on the Russia sanctions measure and other items is finished.

A vote could come as soon as next week at the earliest. The Senate is due to begin its summer recess on Aug. 8, leaving little time to act before the break.

Negotiations between Democrats and Republicans over the bill's language also remain unresolved. The main sticking point is an ethics provision that would restrict senior government officials, including President Donald Trump, from involvement in crypto-related businesses.

Talks had advanced after Trump agreed to an ethics provision limiting his own crypto-related activities. Democrats, however, are pressing for tougher language, arguing the current provision would not sufficiently curb conflicts of interest tied to Trump's crypto businesses.

Thune has said he hopes to pass the CLARITY Act before the summer recess. On whether he would move ahead with a vote, he said, "We have to see where the votes are."

Even if the Senate passes the CLARITY Act, the bill would still need House approval. Both chambers return in September, but the timeline for passing the legislation this year would become even tighter if it misses the pre-recess window, as Congress enters a lame-duck session after the November election.