Crypto Clarity Act: Senate Support Gains Momentum

Senate Poised for Bipartisan Crypto Legislation?

JACKSON HOLE, Wyo. — U.S. Senator Tim Scott, Chairman of the Senate Banking Committee, anticipates that between 12 and 18 Democrats may be willing to vote in favor of the Senate's approach to the Digital Asset Market Clarity Act.

“I believe that we’ll have between 12 and 18 Democrats at least open to voting for market structure,” Scott stated at the SALT conference in Jackson Hole, Wyoming, on Tuesday.

He also noted the challenges, stating, “The forces against it… like Sen. Elizabeth Warren, standing in the way of Democrats wanting to participate, it is a real force to overcome.”

What's at Stake

While the GENIUS Act addressing stablecoins has been signed into law, the crypto industry is keenly awaiting market structure legislation. This legislation will define the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital assets in the U.S., including spot crypto markets.

Senator Scott indicated that the legislation is expected to be finalized before the end of September.

House vs. Senate: A Diverging Path

In July, the Senate Banking Committee introduced a discussion draft bill outlining the SEC's role in overseeing digital assets, following the House's advancement of its own Clarity Act. The Senate Agriculture Committee, another key player, has yet to release any discussion drafts.

For any bill to pass the Senate, at least 60 votes are required, necessitating bipartisan support. Furthermore, the House and Senate must agree on a unified bill. Currently, the Senate Banking Committee’s drafts show significant differences from the House’s Clarity Act. As projects navigate regulatory uncertainty, Codeum offers blockchain security audits and smart contract development solutions to ensure compliance and security.