Breaking: CLARITY Act Senate Vote This Week Could Fail As Democrats Remain Hostile

The Senate’s expected procedural vote on the CLARITY Act this week is now facing uncertainty. U.S. Senate Democrats are signaling that they will not vote to end debate on the bill unless there is progress on several remaining issues to be worked out. New progress indicates that there is no sign of a breakthrough in negotiations between parties before the vote.

Will CLARITY Act Cloture Vote Fail This Week?

Punchbowl News reporter Brendan Pedersen has pointed to a general consensus among Democratic lawmakers that a cloture vote would not proceed without a vote on ethics rules, the issue of so-called “illicit” financing and stablecoin yield.

Writing on X, Pedersen said, “There is a clear consensus among Senate Democrats right now that — without movement on ethics, illicit finance and stablecoin yield — a cloture vote this week on the Clarity Act will fail.” He added, “Democrats won’t be moved by crypto cash at this point.”

Senate Majority Leader John Thune is still trying to get a procedural vote on CLARITY Act before Senate members depart Washington for the summer recess. However, Democratic lawmakers say important issues have yet to be resolved that require bipartisan agreement.

For months, Senate Republicans have been trying to get a vote. Still, the vote count so far shows that it does not appear to have enough support to move forward.

What Do Democrats Say?

One Democratic aide in the negotiations made an ominous statement about the political environment of the bill. “If they spend in August, it’s done,” the aide said as he referred to the terms of the potential for big-time crypto-related campaign spending before negotiations resume.

Senator Ruben Gallego also asked if Republicans are doing enough to maintain the momentum of the bipartisan talks. “We are clearly here, trying to engage in a constructive manner,” Gallego said. He added, “At this point, if they’re not engaging, it’s telling me that they don’t want this to happen.”

Additionally, some Democrats are concerned aggressive political activity by crypto-backed groups may be able to harm negotiations further if it targets competitive races prior to the return of Congress in September.

Meanwhile, proponents of the CLARITY Act say there is hope for progress if the series of procedural votes can be avoided until the rest of the differences between the House and Senate bills. The issues are particularly centered on ethics, financial protections and provisions for stablecoins, are ironed out.

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