Breaking: Senate Majority Leader John Thune Says CLARITY Act Not Likely To Pass Before August

Senate Majority Leader John Thune said the CLARITY Act is not expected to passage in the Senate before lawmakers head to the August recess. It is a setback to the efforts to create an overarching regulatory setup for the crypto industry.

Senate Majority Leader Dismisses Odds of CLARITY Act Passage Before August

In an interview with reporters, Thune said he is not confident that the bill will be finished before the recess. “I don’t think we’ll be able to get them done. I would like to at least get Clarity started. We’ll see where the votes are,” he said when asked about the bill’s prospects before the recess.

The comments were issued after Senate Republicans unveiled a 616-page report of the CLARITY Act after months of negotiations. The proposal aims to clarify the regulation of digital assets in the United States and to transform the role of overseeing digital assets in the United States.

However, opposition is rising from across the party lines. Punchbowl News reporter Brendan Pedersen said the August recess was earlier being seen as a an informal deadline to find common ground on crypto legislation. That time frame has now slipped and questions about the bill have grown.

Pedersen also referenced U.S. Senator John Kennedy, who said if the deadline is missed, it would diminish the odds of enacting the CLARITY Act. “If we don’t have a positive vote, before the August break, I think the odds shift against us,” Kennedy said.

Major Sticking Points In Crypto Bill’s Negotiations

A few GOP senators have highlighted some provisions in the draft. Senator John Cornyn said he shares concerns voiced by the banking industry about stablecoin yield products being able to attract deposits from community banks. He also recognized issues about safeguards for decentralized finance creators.

Senator John Curtis echoed the banking groups’ concerns around the CLARITY Act. He said he would meet with Chairman of the Senate’s banking committee Tim Scott to explore impact on local lenders. “If we’re taking loan capacity away from our banks who are in these communities – I want to make sure that we’re not hurting the very people who rely on these banks,” Curtis said.

Support from the Democrats is still unclear. A coalition of seven Democratic senators, led by Senator Angela Alsobrooks, said that the current Republican draft “falls short.” They said they still believe there should be more protections dealt with on consumer protection, illicit finance, market integrity and conflicts of interest.

Ethics rules are one of the biggest hurdles that remain for the CLARITY Act. It eyes to restrict President Donald Trump and other federal officials in crypto. Republicans have been hesitant to make the provisions more stringent. On this, Senator Cynthia Lummis said, “There’s not going to be a provision that makes opponents of the president happy that also makes the president happy.”