The CLARITY Act, legislation that outlines a framework to regulate crypto, is in a holding pattern in the US Senate as negotiations drag on. Earlier this week, new language in the bill was revealed in an attempt to reach a compromise with policymakers who do not support it. Unfortunately, it appears there are
The CLARITY is key economic legislation that will set in place rules to allow the US to dominate the emerging digital asset ecosystem while guiding the rest of the world. Important aspects of the bill include assigning which agencies will regulate various aspects of crypto while providing important consumer and business protections. Detractors tend to fall into two camps: those who do not want the competition (like traditional finance) and those who do not like crypto, viewing the technology as subversive.
Today, the Crypto Council for Innovation, Blockchain Association, and the Digital Chamber have joined in sending a letter to Senate leadership urging them to advance the bill and vote on the legislation. Addressed to Majority Leader John Thune and Minority Leader Chuck Schumer, the missive warns that without the CLARITY Act, innovation and consumer protections in the US will suffer.
The letter states that currently 67 million Americans own digital assets, yet there are no clearly defined rules.
The groups note that the bill will establish a “comprehensive consumer protection framework and significantly expand law enforcement abilities to counter illicit activities. The need for updated rules is “urgent” as digital assets become more ubiquitous.
“The undersigned recognize that constructive bipartisan negotiations remain underway to secure and expand support for this critical piece of legislation. We appreciate these good-faith efforts of Senators on both sides of the aisle, and we encourage those discussions to continue. At the same time, we respectfully urge Senate leadership to prioritize floor consideration so this bipartisan legislative process may move forward and Congress can deliver the regulatory certainty that innovators, consumers, and financial markets have awaited for years. For the United States to maintain its position as the global leader of financial innovation, there is no substitute for the long-term certainty of durable market structure legislation.”
While the legislation was approved in the House of Representatives over a year ago in 2025 with bipartisan support, it is not yet clear if there are enough Democrat senators willing to support the bill and have it passed into law. Insiders believe that if the bill does not reach the Senate floor for a vote before the August recess, it will fail to become law.