Key facts
- The Senate is scheduled to hold a cloture vote on the Digital Asset Market Clarity Act on September 15.
- Optimism for the bill's passage is low due to ethics concerns and opposition.
- Key Democrats and some Republicans oppose the bill, citing insufficient safeguards.
- Ethics provisions related to Donald Trump's reported crypto profits are a major obstacle.
- The banking industry opposes a provision on rewards for stablecoin holdings.
The U.S. Senate is scheduled to hold a cloture vote on the Digital Asset Market Clarity Act on September 15, a procedural step that could advance the digital asset legislation. This vote follows Senate Majority Leader John Thune's filing for cloture before the August recess. However, significant hurdles remain, casting doubt on the bill's prospects for passage this year.
Key Democrats and some Republicans have expressed opposition, citing concerns over insufficient money laundering and ethics safeguards. A particular sticking point involves ethics provisions related to Donald Trump's reported income from family crypto ventures, with Democrats pushing for stricter enforcement mechanisms. The banking industry is also lobbying against a provision that would allow crypto exchanges to pay rewards on customer holdings of stablecoins, arguing it could compete with traditional bank deposits.
Analysts and lobbyists express skepticism about the bill's future, pointing to the upcoming November elections, which will likely dominate lawmakers' attention. The Senate has a limited number of session days before year-end, and procedural steps required after a successful cloture vote could further complicate passage. If the bill extends into 2027, the election outcome is expected to pose a significant obstacle, with House Democrats potentially prioritizing oversight investigations over crypto legislation.
Senator Cynthia Lummis acknowledged the challenges, stating that "Death by 1,000 cuts is just as fatal as a bullet." Grayscale stated that the digital asset industry has operated for roughly 17 years without the CLARITY Act and will continue to do so, noting that regulatory work by federal agencies has already helped develop parts of the market. The firm added that the absence of the bill would not stop activity across major blockchain networks or prevent stablecoin payments from expanding.