U.S Treasury Secretary Scott Bessent has dismissed Senate Democrats for stalling the crypto market structure bill, the CLARITY Act.
In a statement on Thursday, the 30th of July, Bessent noted that Democrats’ opposition was not surprising but “disappointing.”
It’s disappointing — but not surprising — that Senate Democrats are choosing politics on the cusp of a major victory for American leadership. American Exceptionalism was once a bipartisan goal; if Clarity fails, I have serious doubts.
The Senate Democrats, including pro-crypto ones such as Angela Alsobrooks and Ruben Gallego, withheld support for the bill, citing ethics, developer protections (BRCA) and illicit finance provisions.
For Bessent, some of the raised concerns, like developer protections under the Blockchain Regulatory Certainty Act (BRCA), formalize some historical government policies.
The BRCA does nothing other than codify longstanding Treasury Department policy: non-custodial builders and developers are not, and have never been, subject to registration obligations under the Bank Secrecy Act.
Clarity Act: Republican support falters
That said, Sen Thom Tillis (R-NC) and Ruben Gallego (D-AZ) reportedly reached an ethics deal. The draft included the role of state attorneys general (AGs).
This is one of the key demands Democrats had pushed for, arguing that ethics cases and oversight can not be left to the Department of Justice (DoJ) alone.
Whether this will be enough to win over Senate Democrats is unclear. But there is only 1 week before the August recess. Additionally, other bills like the ‘SAVE America’ Act are also being prioritized by President Donald Trump.
At the same time, the CLARITY Act does not have unanimous support amongst Republicans. AMBCrypto had earlier estimated that only about 49 Senate Republicans would support the bill. Now, Josh Hawley (R-MO) is reportedly a holdout, according to pro-crypto Sen. Cynthia Lummis.
She noted,
Republican support is very high. But I don’t think it will be unanimous, as people like Josh Hawley are really resistant. I think we’ll have an overwhelming majority.
In other words, Republicans will need over 11 Democratic votes to pass the bill on the Senate floor.
That said, as of writing, early Friday, the market was very pessimistic about CLARITY Act passage this year. The odds dropped to another yearly low of 27%.
Overall, there is movement to resolve the ethics provision stalemate. But White House priority and the incoming August recess have made the market doubt the bill’s potential progress next week.
Final Summary
- U.S Treasury Secretary Bessent was “disappointed” with Senate Democrats’ opposition to the CLARITY Act.
- Chances of the bill’s passage dropped to a record yearly low of 27% amid a shrinking window
