The Senate Has Postponed a Vote on The Cryptocurrency Law Until September

Despite Senate Republicans’ pledge to move the bill forward when lawmakers return to Capitol Hill next month, the likelihood that the U.S. cryptocurrency industry will secure once-in-a-generation digital asset legislation is dwindling.

The absence of a much-awaited vote on the Clarity Act, which would establish a regulatory framework for digital assets, was a blow to the cryptocurrency industry as the Senate departed Washington on Saturday for the five-week August recess.

Although Democrats, some Republicans, and other critics claim the bill lacks strict money laundering and ethical controls, the wealthy industry has spent hundreds of millions of dollars promoting it, claiming it will provide cryptocurrency companies a strong legal foundation.

Senate Majority Leader John Thune, a Republican, pushed a procedural vote on Saturday that could begin the process of moving the bill to the Senate floor in September due to the Senate’s backlog of other business and the bill’s ongoing opposition from important Democrats who need to secure 60 votes.

However, a lot of lobbyists and analysts doubt its future. This is due to the fact that the November elections, in which about a third of the Senate and the House of Representatives are up for reelection, will take up much of the attention of lawmakers and shorten Senate sessions during yet another hectic period, leaving little time for lawmakers to settle persistent disagreements.

“I think it’s a long shot,” stated Brian Gardner, Stifel’s top Washington policy strategist, adding that lawmakers don’t seem to be nearing a consensus, especially on controversial ethics clauses.

The Senate will be in session for just 14 days prior to the October election break and an additional 22 days prior to the end of the year when it returns on September 14.