What to know:
- CLARITY Act enters a critical Senate week as lawmakers face an August recess deadline with no scheduled floor vote.
- Former CFTC Chair Chris Giancarlo said blockchain innovation will continue even if the CLARITY Act is delayed or fails.
- The bill is absent from the Senate’s current agenda, raising uncertainty over its path before Congress breaks.
CLARITY Act is now at a pivotal juncture in the United States Senate with very few days left before senators go on break for August. Although many crypto companies are carefully watching the bill, former Chair of the Commodity Futures Trading Commission (CFTC) Chris Giancarlo believes that the industry should not see the law as the only route to blockchain advancement.
Discussing the CLARITY Act, Giancarlo said that the crypto sector has become overly obsessed with securing regulatory clarity through legislation in one go. While supporting the initiative, Giancarlo thinks that innovation in the space will continue regardless of whether or not the act receives approval from Congress.
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Chris Giancarlo Says the CLARITY Act Is Not the Only Answer
This is one of the major points that Giancarlo made: LabCFTC, the innovation program he established at the CFTC. This lab provided regulators with more knowledge on blockchain technology and other innovative tools. Moreover, he proposed establishing an innovation center for all U.S. financial regulators for increased knowledge on digital assets.
Though he supports the bill, he warns against the idea that the future of cryptocurrency depends on the CLARITY Act alone. According to Giancarlo, the technology will continue advancing regardless of whether Congress approves the bill.
Senate Schedule Leaves the CLARITY Act Without a Clear Path
There are some doubts surrounding the future of the bill following the release of the Senate’s agenda. On Monday, there will be a vote on the spending bill H.R. 6500. However, the CLARITY Act or H.R. 3633, which passed in the House of Representatives, is missing from the list.
Even though the bill has not yet been taken off the Senate’s agenda, there are no plans for the bill to reach the Senate floor until lawmakers depart for their August break.
Senate Faces Tight Timeline Before August Recess
Pursuant to Senate Rule XXII, the cloture motion shall be filed by Wednesday, August 5, thus setting up a procedural vote that can take place on Friday, August 7. The approval of the cloture motion means the end of the debate on the motion to proceed and not the bill.
Uncertainty still looms in the political world. Seven Democrats participating in the negotiations argue that there is a need to amend the draft, while Senator Elizabeth Warren is opposed to it. According to John Thune, Majority Leader in the Senate, the process will succeed if there is bipartisan support.
With only a few more days left in legislative session before going on recess, Senate members need to figure out what to do about the CLARITY Act. Inaction could mean that this bill is not addressed until several months down the road.
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