- Industry leaders urged the Senate to advance the Clarity Act before the August recess as legislative time continues to shrink.
- Kristin Smith said the bill would strengthen consumer protections, bankruptcy rules, and regulatory clarity for digital assets.
- Eleanor Terrett reported a Senate vote is now more likely next week as other legislation takes priority.
The Senate faces mounting pressure to advance the Clarity Act before the August recess as industry leaders warn that limited legislative time could delay the bill. Kristin Smith, President of Solana Institute, urged lawmakers to move quickly, while journalist Eleanor Terrett reported that hopes for a Senate vote this week have faded because other legislation is taking priority.
Legislative Calendar Draws Fresh Attention
Smith said the crypto industry is closer to securing the Clarity Act than at any previous point. According to her, only a small number of issues remain after thousands of hours of work by Senate staff, lawmakers, and the White House.
However, she argued that the legislative calendar now presents the biggest obstacle. Smith noted that standalone bills consume significant Senate floor time through multiple procedural votes.
She also pointed to the GENIUS Act, which spent about four weeks on the Senate floor before passage. According to Smith, the Clarity Act must move faster because September will bring government funding deadlines and the National Defense Authorization Act. October, meanwhile, includes the election schedule, followed by a traditionally uncertain lame-duck session.
Consumer Protection Remains Central
Smith said the legislation would introduce federal registration requirements, customer fund segregation, disclosure standards, and bankruptcy protections. She added that those safeguards were absent during the FTX collapse, which left an estimated $8 billion shortfall in customer funds.
Additionally, Smith said the bill would provide law enforcement with clearer authority, expanded training, and stronger coordination with the industry. She also highlighted that the legislation includes the Blockchain Regulatory Certainty Act, which protects developers building non-custodial software from being treated as money transmitters.
Senate Focus Shifts to Next Week
Meanwhile, Terrett reported that Senate Majority Leader John Thune is now unlikely to hold a cloture vote this week. According to her, Senate rules required filing the motion earlier to enable a Thursday vote.
Instead, attention has shifted to next week because the Russia-Iran sanctions bill is expected to receive priority. Terrett added that industry participants consider it essential for Senate leadership to begin the cloture process before lawmakers leave for the August recess.
