While the US Congress is on recess until September, one of the senators spearheading efforts for legislation to create a digital asset market framework expressed optimism for bipartisan backing.
Addressing attendees at the Wyoming Blockchain Symposium in Jackson Hole on Tuesday, Senate Banking Committee Chair Tim Scott stated he anticipates that some Democrats will collaborate with Republicans to advance the Digital Asset Market Clarity (CLARITY) Act following the approval of the Guiding and Empowering Nation’s Innovation for US Stablecoins (GENIUS) Act.
The senator from South Carolina noted he had already been reaching out to Democrats beyond the banking committee to “provide cover” for supporting the legislation.
“We had 18 Democrats support the GENIUS Act,” stated Scott. “I anticipate that we will have between 12 and 18 Democrats at least willing to vote for market structure, which is a considerably more intricate piece of legislation, and the adversarial forces against it […] it is a significant hurdle to overcome.”
Prior to the House passing the CLARITY Act on July 17, Scott noted that the banking committee aimed to pass its own version of digital asset market structure “before September ends.”
A draft of the Senate bill, unveiled in July and temporarily named the Responsible Financial Innovation Act, “expands upon” the CLARITY Act, as stated by Republican leadership, but may diverge from the House legislation.
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Practical expectations for bipartisan backing?
Republicans possess a three-seat majority in the Senate, indicating they will likely require some Democratic support to pass legislation regarding crypto market structure. In addition to Scott’s comments from Wyoming, Senator Elizabeth Warren, the ranking member of the banking committee, addressed the CLARITY Act during the congressional recess.
“We require crypto regulation,” stated Warren in an Aug. 10 interview. “However, we don’t need regulations drafted by the crypto industry… We need measures that curtail corruption and limit the capacity of elected officials to trade in it, in addition to preventing potential economic disruptions due to crypto.”
Over 70 Democrats in the House of Representatives aligned with Republicans to approve the CLARITY Act in July, implying that lawmakers from both sides of the Senate aisle may be inclined to support this legislation. The chamber is planned to resume on Sept. 2.
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