A redrafted version of the Clarity Act – the long-debated crypto market-structure bill – is expected to land on Capitol Hill this week, and it will leave out a key ethics provision that has divided lawmakers.
Multiple people familiar with the negotiations told CoinDesk on July 12 that the new text combines bills that already passed the Senate Banking Committee and the Senate Agriculture Committee. The revised draft adds roughly 70 pages. But the ethics language, along with several other disputed items, is not in the plan.
That omission could be a real problem. Without an ethics clause, securing Democratic support in the Senate becomes much harder. The bill needs at least 60 votes to pass. With some Republicans potentially defecting, the Clarity Act would require at least seven Democratic senators to get on board. One source told CoinDesk that without the ethics provision, "it will be difficult to secure enough Democratic support."
Time is not on the bill's side either. Senate Majority Leader John Thune said last month he wanted to bring the legislation to the floor in July. Lawmakers are now floating the weeks of July 20 or July 27 for a vote. But the window is tight – after the summer recess, Congress will shift into campaign mode ahead of the Nov. 3 midterm elections.
Still, supporters of the Clarity Act got a piece of positive news on a related front. A separate housing bill now includes a provision that bars the Federal Reserve from issuing a central bank digital currency (CBDC) for at least four years. That provision takes effect immediately, making it largely unnecessary for House lawmakers to push a standalone CBDC ban inside the Clarity Act. It takes one negotiating burden off the table.
For traders watching, the immediate catalyst is the release of the revised draft. The absence of the ethics clause means the bill’s path to 60 votes is narrower. The next concrete watch item: whether the Senate actually schedules a vote in the week of July 20 or 27, and whether Democratic whip counts shift after the text is public.
Clarity Act draft drops ethics clause, putting Senate passage at risk
A revised Clarity Act, a bill to set rules for crypto markets, is expected this week without an ethics provision that divided lawmakers. Without it, the bill would need at least seven Democratic senators to join Republicans for the 60 votes required, making a July vote harder as the summer recess and midterm campaigns approach.