U.S. Senate Plans CLARITY Act Floor Vote by Month-End Amid Bipartisan Talks
Highlights
- Senator John Kennedy said that the plan is to bring the crypto bill to the Senate floor later this month.
- Majority Leader Senator John Thune said he would like to put it on the Senate floor before August.
- However, he noted that a bipartisan deal hasn't been finalized yet.
The U.S. Senate is reportedly planning to bring the CLARITY Act to the floor by the end of this month, just before the senators go on their August recess. However, the crypto bill still faces a race against time with Democrats and Republicans yet to reach a bipartisan deal on key issues.
CLARITY Act To Hit Senate Floor By Month End
In an X post, Politico’s Jordain Carney revealed that Senator John Kennedy said the Senate plans to put the CLARITY Act on the floor during the third week of the current session. This signals that the Senate could vote on the crypto bill by the end of this month.
Meanwhile, Majority Leader Senator John Thune said that he would like to put the crypto bill on the floor before next month, but noted that they haven’t finalized a bipartisan deal yet. This development comes on the same day that President Trump urged the Senate to pass the bill in honor of Senator Lindsey Graham, who passed over the weekend.
The president had warned that China and other countries were looking to overtake the U.S. in crypto and AI, which is why the Senate must pass the CLARITY Act soon. Meanwhile, White House crypto advisor Patrick Witt described this week as critical, noting that much time has been lost despite the effort to pass the crypto bill as soon as possible.
Banking Associations Refuse To Back Down On Stablecoin Yield Lobby
The American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) joined 76 state associations in sending a letter to the Senate urging it to strengthen the stablecoin yield provisions in the CLARITY Act.
“In particular, we remain concerned that ambiguities within the bill could encourage stablecoin arrangements to effectively function as substitutes for deposits, despite Congress’s longstanding and clearly stated intent that payment stablecoins should serve as transaction tools rather than store-of-value products,” the letter read.
These banking associations warned that deposit flight could have significant consequences for community banks and their customers. They noted that deposits held by community banks help support mortgage lending, small-business financing, agricultural credit and other forms of relationship banking that drive local economic growth.
This comes despite the stablecoin yield compromise reached earlier this year. It remains uncertain whether this could become an issue again as senators focus on resolving issues around ethics and the DeFi provision, with the CLARITY Act notably one of the major events in the crypto market this week.
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