During the Wyoming Blockchain Symposium on Tuesday, Senator Tim Scott expressed confidence that there would be bipartisan backing for the Digital Asset Market Clarity (CLARITY) Act when it is brought before the Senate. The South Carolina Senator, who chairs the Senate Banking Committee, emphasized his efforts to reach out to Democrats, particularly those outside the committee, to rally support for the bill. Scott mentioned that 18 Democrats voted in favor of the GENIUS Act, a precursor to the CLARITY Act, and he expects 12 to 18 Democrats to support the more complex market structure legislation as well.
Scott is optimistic, despite the challenges that remain in securing votes from those opposed to the bill. He remarked that while the market structure bill is a more intricate piece of legislation, its bipartisan support is crucial to move it forward.
Legislative timeline and prospects
The House passed the CLARITY Act on July 17, and Scott indicated that the Senate Banking Committee is aiming to pass its version of the bill by September’s end. The Senate’s version, tentatively named the Responsible Financial Innovation Act, is expected to build on the framework established by the House legislation, though some differences are anticipated. With Republicans holding a slim majority in the Senate, Scott acknowledged the importance of securing support from Democrats to ensure the bill’s passage.
Senator Elizabeth Warren, a prominent Democrat and ranking member of the Banking Committee, has previously emphasized the need for crypto regulation but cautioned against legislation that could be overly influenced by the crypto industry. While she expressed support for regulation, she stressed the importance of limiting the potential for corruption and safeguarding the economy from risks posed by unregulated crypto markets.
Optimistic outlook for senate passage
While the Senate will return from recess on September 2, Scott’s statements suggest there is optimism that both Democrats and Republicans will ultimately find common ground on the CLARITY Act. The bill’s passage is seen as a significant step toward providing clear regulatory guidelines for the rapidly growing crypto market in the U.S., ensuring that both consumer protections and innovation can coexist in a secure financial environment.