Bipartisan Support Fractures Over Proposed Amendments
The CLARITY Act, designed to establish regulatory clarity around digital assets, has encountered significant friction in its final legislative stage despite clearing the Senate Banking Committee in May, according to Cointelegraph. Democratic lawmakers are now pushing amendments that would include law enforcement provisions—changes that a White House crypto adviser characterized as being "not even close" to the administration's position, signaling a fundamental disagreement over the bill's scope.
The proposed modifications have drawn criticism from pro-crypto Republican Senator Cynthia Lummis, who recently called out Democratic lawmakers for "dragging their feet" on advancing the measure, according to Bitcoin Magazine. The competing visions for how the bill should address law enforcement concerns have created a stalemate as the voting window narrows, raising questions about whether the legislation can overcome these divisive amendments.
SEC Offers Regulatory Alternative as Bill Stalls
The extended delays have prompted backup contingencies. SEC Chair Atkins signaled that the regulatory agency stands ready to develop its own crypto rules framework should the CLARITY Act fail to advance, according to Decrypt. This development underscores how the legislative impasse could shift rulemaking authority from Congress to the executive branch.
