US Senate Banking Committee Chairman Tim Scott said he hopes the CLARITY Act bill, which would restructure the crypto market, can be passed before the August recess.
In an interview with FOX Business on Thursday, Scott said the process was in "red zone," implying the bill was nearing its end. He wants all 13 Republican senators on the committee to support it so that the vote on the amendments can proceed smoothly, thus bringing the bill to the Senate floor.
Scott expects the process to speed up in May.
Scott suggests that if the committee's amendments go smoothly, the final Senate vote could be in June or July. His description suggests the current focus is on securing enough votes within the Republican party before considering the next step.
However, the bill still has unresolved issues. Some Democratic lawmakers have raised concerns about ethical implications, particularly regarding President Donald Trump's ties to his interests in the crypto sector. Senator Ruben Gallego is one of those who have mentioned this point.
The points of contention have not yet been resolved.
For Minority Leader Elizabeth Warren, the main obstacles include concerns about conflicts of interest related to Trump's crypto ecosystem, loopholes in tokenization, and anti-money laundering regulations. Additionally, law enforcement has expressed concerns about overly broad protection for developers.
The biggest sticking point since January has been related to stablecoin yields, but some insiders believe this issue has been resolved. However, the available data doesn't suggest the remaining dissenting blocks have changed their stance.
The real test lies in the votes cast by the committee.
The Senate Banking Committee has 24 members, 13 of whom are Republicans. If the entire group maintains a consensus, the bill could proceed. But according to PunchBowl News, Senator John Kennedy has yet to endorse it due to frustration with the stalled housing bill in the Senate. This means Tim Scott may need to secure at least one more vote from the Democrats to reach the necessary 13 votes.
This development also reflects market caution. According to Kalshi, the probability of the bill being passed before 2027 is almost evenly Chia . For the August deadline, the probability is lower at 38%, while this is the timeframe by which Republicans expect the bill to reach the President's desk.
Summary
The CLARITY Act is nearing a crucial step in the Senate, but the outcome still depends on whether Republicans retain all 13 votes on the committee. Debates on ethics, anti-money laundering, and developer protection remain unresolved, so the timing of the bill's progress is still highly uncertain.
