CLARITY Act at Risk as House Cancels Late-September Sessions Ahead of Senate Vote
Highlights
- The U.S. House has cancelled its sessions for the last two weeks of September.
- This puts the CLARITY Act at risk, which would need another vote in the House before it heads to the president's desk.
- The crypto bill may not get a final vote until after the midterm elections.
The CLARITY Act faces another major obstacle as the U.S. House cancels sessions for the second half of this month. This comes ahead of the Senate’s cloture vote, the first procedural vote before the chamber moves to pass the crypto bill.
CLARITY Faces Potential Delay As House Cancels Sessions
The U.S. House Leadership has canceled the sessions for the last two weeks of September and will head for the midterm elections recess by September 17. This notably puts the CLARITY Act at risk of becoming law this month, even if the Senate passes the bill.
As CoinGape previously reported, the Senate has set a cloture vote for September to advance the crypto bill, although the CLARITY Act still faces key issues, including the stablecoin yield fight between the banks and the crypto industry. If the Senate passes the bill, it will still need to go to the House, which must vote on the amendments the Senate made.
However, this appears unlikely this month, with the U.S. House set for an early recess. This means that the crypto bill is unlikely to get a final vote until the House resumes in mid-November after the midterm elections.
The CLARITY Act is also at risk of passing during the lame duck sessions at the end of the year, with Democrats currently on course to at least flip one of the chambers. Data from the top crypto prediction market platform Polymarket shows a 90% chance that Democrats take the House and a 52% chance they take the Senate.
Odds Of Passage Fall
The odds of the CLARITY Act passing this year have fallen amid this development. Polymarket data shows only a 17% chance that President Trump will sign the crypto bill into law this year, down from a recent high above 20% as of late August.
Commenting on the September 15 vote, SEC Chair Paul Atkins expressed optimism that the Senate will vote to advance the crypto bill. However, it is worth noting that the SEC is already taking steps to provide regulatory clarity through proposed rulemakings.
The Commission last month released the proposed ‘Reg Crypto’ framework, which could provide an avenue for crypto startups to raise funds. It also plans to release the ‘Innovation Exemption’ guidance for tokenized securities.
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