U.S. Representative French Hill has emphasized that securing bipartisan backing is essential to passing the much-anticipated cryptocurrency market structure legislation, known as the Clarity Act, prior to the midterms.
During a Thursday appearance on Fox Business, the lawmaker stated that both Republicans and Democrats have succeeded in narrowing their disagreements while drafting the legislation.
Pro-crypto legislators had originally anticipated that the Clarity Act would pass prior to Congress leaving for the August recess. Following a postponement, the vote is now scheduled for September 15.
“Can Democrats work with Republicans and make sure America leads the world in distributed ledger technology and financial services?” Hill questioned.
He further noted, “This one remaining significant issue is the ethics provision, and that is best solved by passing the legislation because everybody — no matter what family they belong to, the Trumps or not — would then be under a regulatory framework fully scrutinized by the United States government in commodity and securities and banking regulators.”
House Financial Services Chairman Hill originally introduced the Clarity Act last year.
Cryptocurrency firms have consistently demanded transparent regulations for the sector. The Clarity Act establishes a framework to explicitly divide regulatory oversight, determining whether specific digital assets qualify as securities, commodities, or stablecoins.
While the House of Representatives approved the bill last July, it has encountered delays throughout the year, largely stemming from a conflict between the banking lobby and crypto enterprises regarding the payment of stablecoin yields to customers.
A revised draft addressing ethics emerged in July, prohibiting government officials from profiting from or promoting cryptocurrency—a practice Democrats have criticized the Trump family for engaging in.
Several Democratic lawmakers argued that the bill was inadequate and pushed for amendments. Republicans, including Cynthia Lummis, accused some of these Democrats of intentionally stalling the measure.
Conversely, entities like Coinbase, the largest U.S. cryptocurrency exchange, have commended the existing bipartisan efforts surrounding the measure. In July, Coinbase Chief Policy Officer Faryar Shirzad remarked that while certain Democratic legislators were impeding the long-awaited bill, younger Democrats were eager to see it passed.
In August, President Donald Trump stated that lawmakers must enact the “very, very powerful legislation” to ensure the United States stays the “undisputed leader in Bitcoin and crypto.”
Frequently Asked Questions
When is the Clarity Act vote scheduled?
The vote for the Clarity Act is set for September 15.
Who introduced the Clarity Act?
The bill was introduced last year by House Financial Services Chairman French Hill.
What is the main remaining issue holding up the bill?
The primary remaining issue is the ethics provision addressing cryptocurrency promotion and profits by government officials.
When did the House of Representatives previously pass the bill?
The House passed the Clarity Act last July.
