Senate prepares for potential CLARITY Act floor vote as Republicans work to secure support

Senate Republicans are preparing to advance the CLARITY Act as lawmakers face a narrow window to begin floor proceedings before the August recess.

Senate Majority Leader John Thune (R-SD) is expected to move toward filing cloture on the motion to proceed to the bill, according to a Monday report by Eleanor Terrett.

A successful cloture vote would require 60 votes and could trigger up to 30 hours of debate before the Senate moves to consider the legislation itself. However, Senators are scheduled to leave Washington for the August recess on August 7, leaving Republican lawmakers with limited time to secure the votes needed to advance the bill.

Terrett noted that the legislation currently appears to lack sufficient support to clear the 60-vote threshold.

Republicans seek bipartisan support as Senate timeline tightens

Senator Thom Tillis (R-NC) is reportedly leading discussions to address concerns and build broader support for the legislation.

Senators Josh Hawley (R-MO) and Rand Paul (R-KY) could present additional challenges for Republican leaders seeking to secure the votes needed to move forward.

The National Fraternal Order of Police has endorsed the latest version of the bill, saying it addresses prior concerns about provisions in the Blockchain Regulatory Certainty Act.

Former SEC, Senate and NCUA staffer Anne Kelley said the Senate's procedural requirements could make it difficult to complete the legislation before the August recess.

Kelley noted that even if the Senate begins consideration immediately, the process would involve multiple cloture votes, an amendment process and potentially up to 30 hours of debate. She said completing the bill before lawmakers leave Washington would be difficult without unanimous consent to waive some procedural requirements.

However, Kelley argued that failing to pass the legislation before the recess would not necessarily end its prospects for the year. She said the August recess could provide lawmakers and stakeholders with time to review the bill and allow Senate staff to continue working toward a broader agreement ahead of September.

Revised CLARITY Act adds ethics restrictions

The latest developments follow the release of a revised version of the CLARITY Act last week after negotiations between the White House and Republican senators Cynthia Lummis and Bernie Moreno.

One of the most significant changes is a new ethics section that would impose restrictions on certain digital asset activities involving covered individuals. The definition includes public officials and employees, as well as their spouses.

Under the proposed rules, covered individuals would be prohibited from issuing or sponsoring a digital asset in exchange for compensation while serving in public office. A digital asset issued or sponsored in violation of the rules would also be barred from being listed on a digital asset intermediary.

Industry groups including the Digital Chamber, Blockchain Association and Crypto Council for Innovation have urged Senate leaders to bring the legislation to the floor as lawmakers continue efforts to secure the bipartisan support needed for passage.