CLARITY Act Senate Floor Vote To Come Next Week, Says Former CFTC Commissioner

Former Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger, who is also the CEO of the Blockchain Association, says the U.S. Senate could vote on the CLARITY Act as early as next week. The momentum around this crypto market structure bill is growing as the August recess deadline is inching closer.

Former CFTC Commissioner Eyes CLARITY Act Senate Vote Next Week

In an interview on the Thinking Crypto podcast, Mersinger said lawmakers are working towards finalizing the CLARITY Act for a Senate floor vote. She stated the leaders of Senate Banking Committee and Senate Agriculture Committee are combining their two versions into one proposal. Further, she said that lawmakers are working out the rest of the details, as Democrats continue to oppose the bill owing to the ethics provisions debate.

“We’re in the process of merging what was the Senate Banking Committee’s bill with the Senate Agriculture Committee’s bill,” Mersinger said. She added that lawmakers are “negotiating some of the last-minute issues” before moving to a vote.

Mersinger said she expects a Senate vote “probably early next week.” According to her, the vote will test whether supporters have enough backing to overcome the Senate’s 60-vote cloture threshold.

“We’re at the one-yard line right now,” she said. “I feel like we can get it across the finish line.”

Ethics provisions in the legislation are still one of the largest outstanding issues. Earlier this week, President Donald Trump was expected to meet with some Republican senators to talk about that issue. This is thought to be enough to ensure Democratic backing, Mersinger said.

“My understanding is this is on the ethics piece, which is kind of one of the last outstanding issues to get worked out,” she said. “You’ve got to have an ethics deal that the president will sign.”

The Stablecoin Yield Debate In Focus

Mersinger also commented on concerns of banking groups on the stability of yields on stablecoins and decentralized finance. Banks are still lobbying senators, she said, but the influence of the banks has diminished after earlier negotiations.

“Crypto gave up a lot in that yield agreement,” she noted. Mersinger went on to say, “It was not a win for crypto.”

She added that many lawmakers believe banks already had an opportunity to shape the language. “People really aren’t interested in reopening that agreement,” Mersinger said.

The Blockchain Association CEO also dismissed claims that stablecoins would trigger widespread deposit flight from traditional banks.

“The argument of deposit flight just makes no sense at all,” she said. Mersinger argued that community banks serve different customers and that stablecoin reserves would still remain within the banking system.

She also warned that delaying the CLARITY Act beyond the August recess could make passage really difficult.

“It does get a lot harder going into the election season,” Mersinger said. She pointed to the possibility of a lame-duck Congress and shifting political priorities if the bill is delayed.

Mersinger said the current window offers the strongest opportunity for passage. “This window is… probably all the stars are aligned and this is the time to do it,” she said.

Looking Beyond The CLARITY Act

Beyond the CLARITY Act, Mersinger recognized that the next key piece of legislation for the crypto industry will likely be crypto tax reform.

“We kind of view it as a three-legged stool,” she said. “Stablecoins was the first, CLARITY is the second, and then tax reform.”

She added that updating tax rules for digital assets is “critically important” because the existing U.S. tax code “was not written for digital assets.”

For those looking for crypto staking rewards, visit our page on Crypto Staking Platforms.