Galaxy Research Director Alex Thorn has offered a timeline for the CLARITY Act, a bill that aims to regulate the cryptocurrency market in the United States. According to Thorn, the bill could be submitted to President Donald Trump for signature as early as August.
The U.S. Senate Banking Committee passed the CLARITY Act on Thursday with a 15-9 vote. This moves the bill to the Senate floor. The bill is designed to create a comprehensive regulatory framework for the digital asset market in the country.
Bipartisan Support and Compromises
During the committee vote, Senator Ruben Gallego noted that his support for moving the bill through the committee did not mean he would support it in the final vote. Committee Chairman Tim Scott announced that, as part of a bipartisan compromise, five amendments proposed by Senator Cynthia Lummis were accepted. In the final committee vote, only Senator Gallego and Senator Angela Alsobrooks from the Democratic Party voted to move the bill forward. However, both senators indicated they were not guaranteeing their support in the final Senate vote.
The process now requires that the Banking Committee version aligns with a version previously approved by the Agriculture Committee. Senate Majority Leader John Thune is reportedly planning an extensive debate on the Senate floor, expected to last about a week. According to Thune, if the process goes as planned, the CLARITY Act could be sent to Trump for signature in August, following coordination between the Senate and the House of Representatives.
Unresolved Issues Remain
Alex Thorn also stated that the committee vote showed the bill still has potential for bipartisan support. The fact that Gallego and Alsobrooks voted to move the bill forward, outside of strict party lines, is seen as a positive sign for its eventual adoption. However, the bill still has critical unresolved issues. Chief among these is the “ethics clause,” which includes restrictions on individuals connected to high-ranking public officials holding or profiting from digital assets. Additionally, regulations concerning decentralized finance (DeFi) and provisions under the Blockchain Regulatory Certainty Act may face further negotiations.
A Historic Turning Point?
Thorn argued that if the CLARITY Act is passed, it could mark a historic turning point for innovation and investor protection in the U.S. digital asset market. He estimated that the bill’s impact could be similar to that of the Securities Act of 1933 and the Exchange Act of 1934, which formed the foundation of U.S. capital markets. This is not investment advice.
