The CLARITY Act continues to be delayed after Senator Kirsten Gillibrand raised additional conditions before the Senate vote.
She said the bill needed further refinement in areas such as combating terrorist financing, illegal financial activities, and ethical standards for high-ranking officials before moving on to the final stage.
- Gillibrand wants to add requirements regarding the prevention of illicit financing and terrorist financing.
- The bill still needs two committees to finalize the revisions before they can be merged into a single final version.
- The probability on Polymarket is currently at 65%, indicating that the market is still leaning towards the scenario of approval.
New conditions before the CLARITY Act is put to a vote
Gillibrand said the CLARITY Act process cannot proceed unless three sets of requirements are met, including stronger measures to prevent terrorist financing and illicit money flows.
She also stated that they are still working on ethics provisions to ensure that no congressman, president, vice president, or senior official can issue, promote, or advocate for a cryptocurrency or memecoin .
This is a noteworthy addition because it directly impacts the scope and design of the legal framework for digital assets in the United States.
The next step is to merge the two drafts.
For the bill to proceed, the Banking Commission needs to approve its draft, including any last-minute amendments.
This version will then be combined with the Agriculture Committee's version. It is expected to take approximately two to four weeks for both sides to resolve disagreements and finalize the document before sending it to the Senate for a vote.
This process shows that the CLARITY Act is still in the negotiation phase, rather than being close to an immediate vote.
Why do some lawmakers consider this a necessary step?
Supporters argue that additional conditions are necessary for the CLARITY Act to enhance user protection, including asset segregation, increased transparency, and strengthened AML measures for digital asset platforms.
If passed, the bill is also expected to clarify the regulatory framework, grant more power to enforcement agencies, and limit the scope of money transfer laws to custodians, rather than developers.
However, prolonging the process also creates additional delays for the entire legislative path.
Market signals remain bullish.
At the time it was mentioned, Polymarket's probability of the CLARITY Act being passed was 65%.
This figure shows that market expectations remain, even though the legislative process is hampered by additional requirements and negotiations between the parties.
A joint statement from Senators Thom Tillis and Angela Alsobrooks also indicated that the agreement was nearing completion, but was not yet finalized.
Summary
The CLARITY Act has yet to move to the voting stage due to numerous points that need to be agreed upon, particularly regarding ethical requirements and the fight against illicit financing. While negotiations continue, the market maintains a certain degree of expectation that the bill will pass.
