Crypto Clarity Act faces likely Senate stumble as support lags
Crypto Clarity Act faces Senate test with support in doubt
The U.S. Senate has not secured enough votes to advance the Digital Asset Market Clarity Act, a bill that would set market structure rules for crypto, as a planned vote approaches Tuesday afternoon.
Republicans released a new version over the weekend and called it their final offer. Democrats responded with a counteroffer that Republicans rejected.
What the negotiators say
Senator Cynthia Lummis, a leading Republican negotiator, said the Democratic counteroffer looks identical to their opening position. She said Democrats "have not budged an inch" while Republicans "moved substantially on every front."
"If Democrats are serious about reaching a deal, they need to actually start negotiating instead of resubmitting the same demands and calling it progress," Lummis said.
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, said the Republican version "was not negotiated with the Democrats." She called the changes "nonsense," saying they "pretended to solve the problem" but left it intact or expanded it.
Analysts see a narrow path
Beacon Policy Advisors, a Washington policy firm, said it is unlikely Democrats will provide the votes needed unless there are significant changes. The firm said the pathway to advancing the bill is "narrow."
Some industry insiders are unsure the talks can be saved. Coinbase CEO Brian Armstrong has argued that a failed bill will not stop regulatory progress.
At a Washington event on Monday, White House crypto adviser Patrick Witt said the SEC and the CFTC, two U.S. financial regulators, both have "robust" regulatory agendas for crypto rules. "There's still good news coming for the industry," he said.
What is confirmed
According to the reporting, the Senate vote is scheduled for 2:15 p.m. Tuesday, and the bill has not yet gathered enough support to advance. Both parties have publicly criticized the other side's latest offer.
What is still unclear
It remains unclear whether a last-minute deal can be reached. Analysts also cannot say whether Democrats might vote to move the bill forward while keeping the option to reject it later.
Why it matters
The bill is meant to provide clearer rules for the crypto market. SEC Chair Paul Atkins has acknowledged that his agency's rules need the backing of law to be permanent, suggesting that a failed bill could leave regulatory certainty incomplete.
What happens next
The Senate's opening vote is planned for 2:15 p.m. Tuesday. No deal had been announced publicly before the vote.
