The Senate is scrambling to schedule a vote on the Crypto Clarity Act before a five-week recess, but the bill has hit a snag. Senate Majority Whip John Barrasso publicly backed the measure this week, urging his colleagues to pass it as a follow-up to the GENIUS Act. Lawmakers are running out of time, and the White House hasn't yet responded to amendments sent over for review.
A bill that keeps growing
The Clarity Act passed the House last year and has been stuck in the Senate ever since. It's grown considerably, according to Senator Cynthia Lummis, thanks to Democratic requests for additional provisions. A new version circulated since July includes ethics rules that ban government officials and their families from issuing or promoting cryptocurrency.
That's a significant addition. But a group of Democrats wrote a letter in July saying the bill still falls short of their expectations. So the negotiations are far from settled.
The stablecoin sticking point
The real deadlock this year comes down to stablecoin yields. Banking lobbyists are worried about crypto companies paying interest to customers on stablecoin holdings, which conflicts with firms like Coinbase. That's been a major hurdle, and it's not resolved yet.
Some Republicans are openly frustrated with Democrats for delaying the bill. Others, like Senator Tim Scott, say they're confident a vote will happen before the recess. Scott didn't offer specifics, just confidence.
Waiting on the White House
Senator Thom Tillis said the White House was reviewing amendments on Wednesday. By Thursday, he hadn't heard back. That silence is a problem when the calendar is this tight.
Senate Majority Leader John Thune had previously expressed hope for a vote before the recess. Lummis said a vote will happen, and lawmakers might stay an extra day or two to make it work. That's not an ideal sign for a chamber that likes to leave on time.
The next concrete step is the White House response. If it comes quickly, the Senate could still vote this week. If not, the bill waits until after the recess, and the momentum from Barrasso's push may cool. Either way, the clock is ticking.
