Senate Republicans are attempting to move the Clarity Act closer to a floor debate before August. The bill requires 60 votes to clear the Senate’s cloture hurdle, a significant challenge given the GOP's 53-seat hold and some undecided senators.
Senate Majority Leader John Thune is expected to file cloture on a motion to proceed this week, which would trigger a vote two session days later. If successful, it would clear the way for up to 30 hours of debate before a vote on the bill itself. However, passing cloture doesn’t guarantee final approval but is a critical step to bring the Clarity Act to the Senate floor.
Democrats voice concerns amid bipartisan talks
Seven Democratic senators have expressed that the latest version of the Clarity Act still misses the mark on key issues like political ethics, consumer protections, illicit finance, market integrity, and decentralized finance regulation. Senator Thom Tillis, leading bipartisan negotiations, is pushing for ethics rules that go beyond current proposals supported by the White House and Republican colleagues.
The White House-endorsed language would limit senior elected officials from sponsoring certain digital assets, but some Democrats doubt whether enforcement by the Department of Justice will be stringent enough. Senators Catherine Cortez Masto and Mark Warner are also demanding stronger measures to prevent crypto-related financial crimes, highlighting the need for firmer safeguards.
Without enough Democratic support, the bill won’t reach the 60-vote threshold, especially with possible Republican defections Senators Josh Hawley and Rand Paul haven’t publicly backed the legislation, and Minority Leader Mitch McConnell is expected to be absent. Both Hawley and Paul previously voted against similar crypto legislation, adding uncertainty to the GOP’s slim margin.
Adding a notable development, the National Fraternal Order of Police endorsed the revised Clarity Act after lawmakers addressed concerns about the regulation of decentralized finance, a move that removes one significant obstacle to bipartisan backing. This reflects the ongoing efforts to refine the legislation in response to stakeholder inputs and industry feedback.
