The US Senate has shelved the Digital Asset Market Clarity Act, leaving a potential year-end attachment to must-pass legislation as its last hope. The bill, which aims to provide clarity on market structure for digital assets, was not voted down but rather postponed due to other legislative priorities.
Legislative Priorities
The Senate's decision to prioritize a Russia sanctions bill and a nominations package has left the Clarity Act in limbo. With the midterm elections approaching, the bill's chances of passing in September are slim.
According to Rep. Dusty Johnson, the House will fast-track the Clarity Act if the Senate moves soon. However, the Senate's procedures and queue of contested bills make it unlikely that the bill will be passed before the August 8 recess.
Year-End Attachment
The potential attachment of the Clarity Act to must-pass legislation in December has been floated by lobbyists, but no senator has confirmed this strategy. This approach would solve the floor-time problem but not the votes problem, as members who object to certain provisions would still have leverage to demand their removal.
Legislative Implications
If the Clarity Act is attached to a must-pass bill, its scope would likely shrink, with only the least opposed provisions surviving. The classification and grandfathering provisions may be the most likely to remain, while more contentious issues like registration regimes and jurisdictional allocation may be left behind.
