CLARITY Act To Reach Finish Line By July 4, US Senator Says

Senator Bill Hagerty said the U.S. Senate could be set to pass the CLARITY Act prior to the July 4 congressional recess. It remains the window for the legislation to be enacted, per lawmakers and White House officials. He believes that the bill has the potential to provide much-needed regulatory clarity for the crypto industry.

US Senator Remains Hopeful On CLARITY Act Approval By July 4

Hagerty said that he hopes that Congress can finish the work on the legislation before the Independence Day recess as negotiations continue. Now, the market is eyeing a Senate floor vote for the bill

“This will be something more a matter of focus after the 4th of July recess period, but I certainly hope to see it done before,” Hagerty said in a FOX Business interview. Recently, White House crypto advisor Patrick Witt also doubled down on the July 4 date for CLARITY Act approval.

However, lawmakers like Senator Cynthia Lummis indicate a Senate floor vote is more likely before the August recess than the July 4 recess.

Meanwhile, the Tennessee Republican said the measure is very much needed to create a comprehensive framework for digital assets in the U.S.

“If you think about where the CLARITY Act is taking us, it’s creating the type of certainty that’s necessary to bring the entire digital asset framework into full-blown opportunity here in America,” he said.

He referenced that the CLARITY Act follows the Senate passing the GENIUS Act, which created a federal framework for stablecoins. Hagerty noted that the GENIUS Act offered clear stablecoin regulations, which helped strengthen the U.S. Dollar via 1:1 USD-backed stablecoins.

Moreover, supporters say the CLARITY Act would clarify the duties of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). In addition, it aims to establish new rules of compliance for digital asset companies. Also, Senator Lummis revealed that the bill will allocate $150 million to combat illicit activity in the crypto industry.

Industry Says Regulatory Certainty Will Unlock Investment

The crypto market is suffering from volatility stemming from Federal Reserve policy and geopolitical events. Moreover, in the Middle East, Israel striking Lebanon today made it worse.

Still, industry leaders remain optimistic on the future of the market. Solana Policy Institute President Kristen Smith said that institutional interest in crypto remains strong.

“I’m talking to a lot of asset allocators that are interested in coming into the crypto space, but what they’re waiting for is the clear rules of the road,” Smith said.

She dismissed JPMorgan CEO Jamie Dimon’s criticism that the CLARITY Act would make it more difficult to oversee crypto. Smith said the bill would provide “new consumer protections, new tools for law enforcement.” It will also address regulatory gaps that are currently missing, she added.

Smith said that the passage of CLARITY Act would give traditional financial institutions and investors the confidence to get more involved in the sector. She hinted that could lead to more institutional investments. Along similar lines, Senate Banking Committee Chairman Tim Scott predicted that the crypto market could surge to $30 trillion if the bill is passed.