The CLARITY Act remains in legislative purgatory as elected officials haggle over the bill’s language. The crypto market infrastructure framework will determine the trajectory of the US market and could fuel digital asset innovation and US dominance in this sector of Fintech. Yet an updated bill has not arrived, disappointing advocates. Today, reports indicate that updated language will arrive next week, setting up a potential Senate floor vote later in the month.
While there are plenty of opinions on the bill, certain officials have sought to obfuscate the legislation, including the inclusion of important AML/KYC and investor protection rules.
Senator Cynthia Lummis lucidly explained: “Leaving digital asset rules unsettled has not protected anyone. Instead, it’s left consumers and the industry vulnerable and has pushed innovation, investment, and jobs somewhere with clearer answers.”
The statement was partially in response to Senator Elizabeth Warren‘s claims that “the CLARITY Act is a ticket to sanctions evasion.” Senator Lummis aided Senator Warren by sharing the specific parts of the bill that block nefarious actors like Iran.
The delayed legislation cannot arrive soon enough, as the bill could face sufficient opposition in the Senate to delay further or kill it. While Republicans hold a majority in the Senate, it is a small one, and the bill could be blocked without bipartisan support.
