The CLARITY Act Has One Last Chance Before Crypto Rules Could Be Delayed for Years

• US Senate lawmakers are debating US crypto policy as Senator Cynthia Lummis pushes her crypto market bill, the CLARITY Act, toward passage before the August recess
• The CLARITY Act faces Senate opposition, with Elizabeth Warren, Jack Reed, and Chris Van Hollen opposing the current version over ethics and conflict-of-interest concerns
• Failure to pass the bill before the August recess could sharply reduce its chances of becoming law, potentially delaying US crypto policy until after the midterms or even 2030, according to Lummis

The US crypto policy is sitting in the middle of a heated debate again, as the US Senate continues to discuss its viability. However, in efforts to rehaul the entire US crypto policy, Senator Cynthia Lummis is leaving no stone unturned to bring the Clarity Act bill into existence. Moreover, the bill now has a clear deadline to follow. If the act is not approved by August 17, the chances of it becoming a law drop significantly, pushing the US crypto policy ambitions into a corner. 

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What Is The Latest Update On The Clarity Act?

The US senator Cynthia Lummis appeared in a recent CNBC interview, talking in depth about the Clarity Act. Per Lummis, her team has been working on the bill for the last ten months and is planning to introduce its text in the next ten days. 

“Well, it’s taken us virtually every day for the last 10 months to get this bill in the condition it’s in today, and we’re ready. So we will be introducing it in the next few days. We’re going to be in session now for four straight weeks. It’s very important that we get this bill across the finish line before the August recess begins so we can make the markets aware of the stability that will be provided to them if they remain on shore in the United States to do business. This is a pivotal time for the industry, and we want to meet their needs. We also want to meet the needs of law enforcement with regard to preventing illicit finance and provide consumer protections.”

Introducing the CLARITY Act in the US Senate has not been an easy task. The bill continues to receive heavy opposition from three Senate members. Sens. Elizabeth Warren, Jack Reed, and Chris Van Hollen stated that they cannot support the current version of the CLARITY Act, citing conflicts of interest and ethics rules. 

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The Fight Goes On: Last Chance For The Bill?

In the middle of this, President Trump has also shared how he wants the bill to pass without further skirmishes. It is to be noted that the CLARITY Act is hanging by a loose thread at the moment. If the bill fails to pass before the August 7 deadline, its chances of becoming a law fall sharply. 

“The Senate returns today and has until August 7 before recess. If the bill does not pass before then, its chances of becoming law drop sharply. The House Financial Services Committee has a field hearing on the CLARITY Act scheduled for July 17 in New York.”

Moreover, if the bill does not pass before recess, the next realistic window could shift to the next midterms. In addition to this, Senator Lummis has warned that failing to pass this bill in the US Senate may end up pushing its deadline farther into the future to 2030. 

“If it does not pass before recess, the next realistic window is after the midterms. Senator Lummis has warned that a failure now could push the US crypto policy legislation out to 2030.”

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