The regulation of the cryptocurrency market in the United States entered a decisive phase this Wednesday (July 23). Senator Cynthia Lummis, one of the main authors of the Digital Asset Market Clarity Act (Clarity Act), released the first consolidated version of the bill, but said the text will still undergo changes before the Senate vote.
According to Lummis, the draft brings together the proposals approved by the Senate Banking and Agriculture Committees and will now be reviewed by lawmakers, regulators, and representatives of the crypto industry. The goal is to incorporate suggestions and resolve the points that still divide Republicans and Democrats.
The main impasse continues to be ethics rules for public officials. The negotiations are discussing how far state attorneys general will be able to act in cases of possible conflicts of interest involving federal officials. As an alternative, the proposal allows states to sue cryptocurrency exchanges that list assets in disagreement with the rules set out in the legislation.
The ethical restrictions cover the president of the United States, members of Congress, federal judges — including Supreme Court justices — and their spouses. The issue gained prominence due to President Donald Trump's business dealings linked to the digital asset sector, such as a memecoin associated with his name and a stablecoin issuing company.
In addition to ethics, senators continue negotiating measures to strengthen the fight against money laundering, illicit financing, and activities on decentralized finance (DeFi) platforms. The new version also creates mechanisms to combat fraud at cryptocurrency ATMs and allows platforms to freeze suspicious assets when they are cooperating with investigations by the authorities.
Next steps for the Clarity Act
With the publication of the draft on July 23, the Senate begins a new phase of negotiations to adjust the text. Lummis's expectation is that discussions on ethics and illicit financing will continue over the coming days, before the bill is brought to the floor.
There is still no official date for the vote, but the Senate Majority Leader, John Thune, said he intends to bring the proposal to the floor before the legislative recess, scheduled for August 7. To move forward, the Clarity Act will need the support of at least 60 of the 100 senators.
If approved by the Senate, the proposal will still have to go through the reconciliation process with the version previously approved by the House of Representatives. Only after this alignment can the text be sent to the President of the United States for signing, a step that will define the creation of the new regulatory framework for the cryptocurrency market in the country.