Melker Bengtsson
TL;DR
-
CFTC Chief Michael Selig urged the US Senate to pass the CLARITY Act, days after the missed 4th of July target
-
The Senate returns July 13th with around four weeks before the next recess, possibly the last realistic window for passage
-
The ethics provision remains the main issue, with Democrats adamant on a ban on senior officials holding personal crypto interests
In an interview with FOX Business yesterday, the Trump appointed CFTC Chief Michael Selig urged the US Senate to pass the CLARITY Act. The comments come just a few days after the Senate missed the previous 4th of July target. Selig said:
"We're so close. We have to get this done."
The CFTC Chief calls the bill critical for consumer protection as it would bring a federal standard to the crypto market, rather than relying on a state-by-state patchwork. He also said that the issues currently holding up progress on passing the act are unrelated.
Cynthia Lummis, the lead crypto legislator in the Senate, commented on the same program:
If we fail to pass the Clarity Act, we are ensuring another country will write the rules for digital assets and we spend the next decade catching up.
Four Weeks Before the Next Recess
The US Senate returns on July 13th and has around four weeks before the next recess. It might be the last realistic window for the act to be passed. September tends to be dominated by government funding, since the Government fiscal year ends on September 30th, and the defence bill. This usually pushes discretionary bills out. Additionally, with midterm elections coming up, there’s less incentive for Democrats to hand the current administration a win.
Before the bill can actually hit the floor for a vote, there are still a couple of issues to be solved. The main one is the ethics provision. Democrats are adamant there’s a ban on senior officials holding personal crypto interests. Republicans, meanwhile, claim this is a provision that’s explicitly targeting Trump. Then there’s the money transmitter issue, shielding non-custodial developers.
In the Senate, the bill will need at least 60 votes, which means seven Democrat senators will have to crossover. Polymarket odds for the bill passing have moved down significantly, from 74% only a month ago, to just around the mid 40s today.
