The CLARITY Act Heads to the Senate: Breakthrough or Political Deadlock?

The U.S. Senate is preparing for a crucial debate on the CLARITY Act — a long-anticipated bill designed to bring clear regulatory guidelines to the digital assets market. While many industry leaders are hopeful about a breakthrough, others warn that partisan disagreements could delay or even derail the proposal.

Disagreements and Uncertainty Surround the Final Version Alex Thorn of Galaxy Digital noted on X (formerly Twitter) that despite Republican efforts to bring the bill before the Senate Banking Committee on January 15, many issues remain unresolved. According to Thorn, Democrats are pushing for several amendments, including: 🔹 Mandatory compliance with sanctions for DeFi front-ends

🔹 Expanded powers for the Treasury’s OFAC office to combat illicit activity

🔹 Clear rules around stablecoin yield management

🔹 Ethical safeguards and conflict-of-interest protections for regulators Thorn expressed doubts about whether both sides can find common ground in time.

Senate Committee Readies for a Vote Senate Banking Committee Chairman Tim Scott confirmed that an official vote on the CLARITY Act is imminent. According to Scott, members of the committee have spent the past several months working through multiple versions of the bill and are now ready to take action.

Crypto Community Remains Divided Despite the upcoming Senate session and Scott’s optimistic remarks, the crypto community remains divided over the bill’s future. Scott Johnsson of Van Buren Capital emphasized that a bill without genuine bipartisan support is unlikely to succeed:

“With the primaries starting in March, each day of delay increases the risk of a flawed bill. Forcing it through post-election would be a strategic misstep.” Salman Banaei, chief legal officer at Plume, echoed those concerns, warning that if the current proposal represents the Republicans’ “final offer” to Democrats, bipartisan backing is unlikely:

“The outlook for bipartisan passage doesn’t look promising.”

Some Still Hold Hope On the more hopeful side, Gabriel Shapiro, founder of MetaLex, believes the U.S. will soon see a well-defined market structure for crypto. While he acknowledges the path forward won’t be easy, he sees the CLARITY Act as a real opportunity to align policy and innovation.

#CLARITYAct , #Stablecoins , #DigitalAssets , #defi , #Web3

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