Key facts
- The U.S. Senate has delayed a vote on the CLARITY Act, a digital asset regulatory framework bill, until September.
- Senate Majority Leader John Thune confirmed the delay, citing ongoing negotiations and a lack of Democratic support.
- Democrats are seeking further talks on outstanding issues, including ethics rules for officials' crypto holdings.
- An unreleased addendum negotiated by Senators Thom Tillis and Ruben Gallego would require the president to divest from crypto-related businesses and could allow for tax deferral on gains.
- The bill previously passed the House and cleared Senate committees, but requires approximately six Democratic crossovers for passage.
The U.S. Senate has postponed a vote on the CLARITY Act, a significant piece of legislation aimed at establishing a regulatory framework for digital assets, until September. Senate Majority Leader John Thune confirmed the delay, citing Democratic insistence on further negotiations and the need to secure approximately six Democratic crossovers to reach the 60-vote threshold required for passage. Key sticking points include provisions related to stablecoin rewards, law enforcement capabilities against illicit finance, and particularly, ethics rules concerning government officials' cryptocurrency holdings. An unreleased addendum negotiated by Senators Thom Tillis and Ruben Gallego proposes that the president divest from crypto-related businesses, potentially allowing for capital gains tax deferral. This delay, occurring just before the August recess, pushes the bill into the critical pre-election period, with its passage uncertain. Industry groups expressed disappointment but maintained a determined tone regarding the need for regulatory clarity.