US Senate to Vote on Clarity Act for Crypto Regulation

The US Senate is scheduled to vote on the Clarity Act, a bill designed to create a regulatory framework for digital assets, which crypto companies believe would provide them with a more solid legal footing. The vote is expected shortly after 2 p.m.

EDT (1800 GMT). Despite broad support from the crypto industry, it remains unclear if the legislation can secure the 60 votes required to advance.

Senate Republicans released a new text of the bill on Sunday to address concerns from the banking industry and some Democrats. Analysts indicate that the crypto market has largely priced in the expectation that the bill will not pass in the near future.

The revised bill grants state attorneys general more power to enforce restrictions on public office holders profiting from crypto ventures and mandates political officials to divest significant financial interests in crypto-focused companies or place those assets in a blind trust. However, banking groups criticized the new draft, asserting it does little to alleviate fears that stablecoin rewards could undermine banks' ability to extend credit.