Blab Crypto
Senate Faces Deadline to Pass CLARITY Act Amid Banking, Tax, and PAC Pressure
The U.S. Senate is racing toward a critical deadline as the chamber’s final week before the July 13 recess ends. With an August break slated to last until September 13, lawmakers have only a few weeks to iron out the remaining provisions of the Digital Asset Market Clarity Act (CLARITY Act) before the November mid‑term elections.
At the heart of the debate are several unresolved items that could shape the legal landscape for crypto. An ethics clause seeks to limit the Trump family’s crypto holdings, while a separate provision tackles how much legal immunity decentralized‑finance (DeFi) developers should receive when their platforms are used for illicit activity. In addition, the bill now requires prediction‑market operators to hold state gaming licenses for sports‑betting services, and a new discussion has resurfaced over whether crypto platforms can offer rewards for stablecoin‑based activities. Though the platform side was thought to be settled, banking groups have reached out to senators outside the Banking and Agriculture committees, prompting a need to reconcile differing committee drafts.
Senate Agriculture Committee Chairman John Boozman noted that many members lack a clear understanding of the bill’s language. Meanwhile, Senator Cynthia Lummis of Wyoming—who is not running for re‑election—has issued more than ten tweets urging passage of CLARITY, covering DeFi, investor disclosure, and law‑enforcement requirements.
In a related legislative move, the Senate approved the 21st Century ROAD to Housing Act on Monday, adding language that bars the Federal Reserve from issuing a central‑bank digital currency (CBDC) before January 1, 2031. The bill now returns to the House, where leaders may push to make the CBDC prohibition permanent, potentially sending the measure back to the Senate.
Tax clarity for crypto mining and staking is also on the agenda. On Monday, the CEOs of the Blockchain Association, Crypto Council for Innovation, and The Digital Chamber signed a joint letter to the House Ways & Means Committee urging swift passage of HR 9175, the Tax Clarity for Mining and Staking Act. The bill would shift tax liability from the moment tokens are generated by block rewards or staking to the point of sale. The letter argues that further debate could revive the problems the bill intends to solve.
The American Banking Association (ABA) has opposed the bill, claiming it favors cryptocurrencies over other asset classes and could divert capital from traditional banking products. The ABA’s position is that interest on savings accounts and dividends are taxed annually, even if the funds remain in the account.
While the tax debate is unfolding, crypto‑focused political action committees (PACs) are preparing for primary elections on June 23. In Maryland, the race for the open House seat is expected to be won by Adrian Boafo, who has received $5.5 million from Protect Progress, a Democratic PAC backed by Coinbase, Ripple, and Andreessen Horowitz. Senator Chris Van Hollen warned voters that the PAC’s ads do not mention crypto and that Boafo may have made promises to his backers.
In New York, Rep. Ritchie Torres is projected to win his primary with $1.4 million from Protect Progress and a $300 000 contribution from the Tether‑linked Fellowship PAC. The open House District 12 race has seen over $24 million in outside spending, including contributions from Ripple co‑founder Chris Larsen and Palantir’s Joe Lonsdale.
The Digital Chamber is organizing a member fly‑in to Washington, D.C., on June 23 to press the CLARITY agenda. The event aims to bring industry leaders, congressional staff, and policymakers together for advocacy and collaboration.
Surveys on public attitudes toward crypto add context to the political landscape. Digital Currency Group (DCG) released a Harris Poll claiming 40 % of voters view crypto as a major election issue, but the poll’s wording indicated that many respondents wanted more regulation rather than outright support. A Pew Research survey found that 19 % of U.S. adults have used or invested in cryptocurrency, with a higher share among Republicans (22 %) than Democrats (unchanged from 2021). The survey also noted that 27 % of respondents under 50 have used crypto, compared to 10 % of those 50 and older.
The Senate’s deadline to resolve CLARITY, the tax bill, and the ongoing PAC influence will shape the regulatory environment for digital assets before the mid‑term elections. The outcome will affect how the U.S. treats crypto ethics, illicit‑finance liability, stablecoin rewards, and the balance between banking and crypto interests.
The next few weeks will determine whether the Senate can bring the CLARITY Act to a vote, whether HR 9175 will pass, and how the political and banking communities will influence the final shape of U.S. crypto regulation.
At the heart of the debate are several unresolved items that could shape the legal landscape for crypto. An ethics clause seeks to limit the Trump family’s crypto holdings, while a separate provision tackles how much legal immunity decentralized‑finance (DeFi) developers should receive when their platforms are used for illicit activity. In addition, the bill now requires prediction‑market operators to hold state gaming licenses for sports‑betting services, and a new discussion has resurfaced over whether crypto platforms can offer rewards for stablecoin‑based activities. Though the platform side was thought to be settled, banking groups have reached out to senators outside the Banking and Agriculture committees, prompting a need to reconcile differing committee drafts.
Senate Agriculture Committee Chairman John Boozman noted that many members lack a clear understanding of the bill’s language. Meanwhile, Senator Cynthia Lummis of Wyoming—who is not running for re‑election—has issued more than ten tweets urging passage of CLARITY, covering DeFi, investor disclosure, and law‑enforcement requirements.
In a related legislative move, the Senate approved the 21st Century ROAD to Housing Act on Monday, adding language that bars the Federal Reserve from issuing a central‑bank digital currency (CBDC) before January 1, 2031. The bill now returns to the House, where leaders may push to make the CBDC prohibition permanent, potentially sending the measure back to the Senate.
Tax clarity for crypto mining and staking is also on the agenda. On Monday, the CEOs of the Blockchain Association, Crypto Council for Innovation, and The Digital Chamber signed a joint letter to the House Ways & Means Committee urging swift passage of HR 9175, the Tax Clarity for Mining and Staking Act. The bill would shift tax liability from the moment tokens are generated by block rewards or staking to the point of sale. The letter argues that further debate could revive the problems the bill intends to solve.
The American Banking Association (ABA) has opposed the bill, claiming it favors cryptocurrencies over other asset classes and could divert capital from traditional banking products. The ABA’s position is that interest on savings accounts and dividends are taxed annually, even if the funds remain in the account.
While the tax debate is unfolding, crypto‑focused political action committees (PACs) are preparing for primary elections on June 23. In Maryland, the race for the open House seat is expected to be won by Adrian Boafo, who has received $5.5 million from Protect Progress, a Democratic PAC backed by Coinbase, Ripple, and Andreessen Horowitz. Senator Chris Van Hollen warned voters that the PAC’s ads do not mention crypto and that Boafo may have made promises to his backers.
In New York, Rep. Ritchie Torres is projected to win his primary with $1.4 million from Protect Progress and a $300 000 contribution from the Tether‑linked Fellowship PAC. The open House District 12 race has seen over $24 million in outside spending, including contributions from Ripple co‑founder Chris Larsen and Palantir’s Joe Lonsdale.
The Digital Chamber is organizing a member fly‑in to Washington, D.C., on June 23 to press the CLARITY agenda. The event aims to bring industry leaders, congressional staff, and policymakers together for advocacy and collaboration.
Surveys on public attitudes toward crypto add context to the political landscape. Digital Currency Group (DCG) released a Harris Poll claiming 40 % of voters view crypto as a major election issue, but the poll’s wording indicated that many respondents wanted more regulation rather than outright support. A Pew Research survey found that 19 % of U.S. adults have used or invested in cryptocurrency, with a higher share among Republicans (22 %) than Democrats (unchanged from 2021). The survey also noted that 27 % of respondents under 50 have used crypto, compared to 10 % of those 50 and older.
The Senate’s deadline to resolve CLARITY, the tax bill, and the ongoing PAC influence will shape the regulatory environment for digital assets before the mid‑term elections. The outcome will affect how the U.S. treats crypto ethics, illicit‑finance liability, stablecoin rewards, and the balance between banking and crypto interests.
The next few weeks will determine whether the Senate can bring the CLARITY Act to a vote, whether HR 9175 will pass, and how the political and banking communities will influence the final shape of U.S. crypto regulation.
