CLARITY Act Stalled in Senate Despite Growing Institutional Support
Senate sets aside Digital Asset Market Clarity Act before August recess over ethics and time issues Franklin Templeton joins major firms in backing the
Summary
- Senate sets aside Digital Asset Market Clarity Act before August recess over ethics and time issues
- Franklin Templeton joins major firms in backing the bill for defined oversight and investor protections
- SEC ready to issue its own crypto market rules if legislation fails
The Senate set aside the Digital Asset Market Clarity Act before its August recess. Lawmakers dropped the 616-page bill over ethics fights and a tight schedule.
Major Wall Street firms keep pushing for the measure anyway. They want clear rules that spell out who watches crypto and how to protect investors.
"The SEC will write crypto market rules itself if Congress fails to pass the Clarity Act."
, SEC Chair Paul Atkins (finance.yahoo.com)
Context
The CLARITY Act aims to define digital assets and assign oversight duties across agencies. Committee work already produced a merged draft with added ethics rules. Senate Republicans put out that version in recent weeks.
Democrats pushed back on several points. Those objections helped kill floor time before the break.
Details
CoinDesk and other outlets reported the Senate ran out of days before recess. Too many other bills and ethics disputes blocked any vote on this one.
Franklin Templeton joined BlackRock, Fidelity, and Goldman Sachs in backing the bill. The firm wants defined rules, clear agency roles, and better investor safeguards for crypto.
SEC Chair Paul Atkins warned the agency will craft its own crypto rules without a law. Supporters say that route still leaves big gaps.
Outlook
Lawmakers return after recess with the bill still on hold. They must fix the ethics issues and find time for a vote before the session ends.
