French Hill Seeks Bipartisan Support for Clarity Act Before September Vote

Lawmaker pushes for crypto regulation bill ahead of midterms

U.S. Congressman French Hill is working to secure bipartisan support for the Clarity Act, a major cryptocurrency market structure bill, before Congress votes in September. The House Financial Services Chairman said negotiations between Democrats and Republicans have narrowed their differences on the legislation. Hill told Fox Business that both parties are closer to agreeing on how to draft the bill. The Clarity Act was previously passed by the House last summer with 78 Democratic votes but has since stalled in the Senate. A vote is now scheduled for September 15, after delays pushed it back from the August recess.

Key points

• The Clarity Act aims to create clear regulatory rules for the crypto industry by dividing oversight between different government agencies.
• The bill distinguishes which digital assets are securities, commodities, or stablecoins (digital currencies tied to the value of a traditional currency like the U.S. dollar).
• Lawmakers hope to pass the legislation before the September 15 vote.
• A new draft includes ethics provisions that ban government officials from promoting or profiting from cryptocurrency.

What the Clarity Act proposes

The Clarity Act was first introduced by Hill last year. It seeks to address the long-standing calls from crypto companies for clear regulatory frameworks. The proposed law would formally divide oversight responsibilities among U.S. regulators, clarifying whether a digital asset falls under securities, commodities, or stablecoin rules. One major point of contention has been the ethics provision. The latest draft bans government officials from promoting or making money from crypto. Some Democrats have criticized the Trump family for promoting crypto projects while in office. Others have accused Republicans of deliberately holding back the bill. Hill argued that passing the legislation is the best solution to these ethics concerns. He stated that it would place everyone, regardless of political affiliation, under a regulatory framework fully scrutinized by U.S. commodity, securities, and banking regulators.

What is still unclear

• It remains uncertain whether the Senate will pass the bill even if the House approves it again.
• Some Democrats have requested amendments and may still block the legislation.

Industry and political reactions

Crypto companies have long advocated for clearer regulations. Coinbase, America’s largest cryptocurrency exchange, praised the bipartisan efforts put into the bill. Faryar Shirzad, Coinbase’s Chief Policy Officer, noted in July that while some Democratic lawmakers were holding back the legislation, younger Democrats wanted to see it pass. President Donald Trump also weighed in during August, stating that lawmakers must pass the "very, very powerful legislation" if the United States wants to remain the undisputed leader in Bitcoin and crypto.

Why this matters

The passage of the Clarity Act would establish a formal regulatory framework for the cryptocurrency industry in the United States. This could provide companies with the legal clarity they have requested and potentially shape how digital assets are regulated globally.

What happens next

The House is expected to vote on the Clarity Act on September 15. If passed, the bill would move to the Senate for consideration.

Sources

• Bitcoin Magazine