Gallego Warns Rushing CLARITY Act Senate Vote Could Set Crypto Market Structure Bill Back
Key Takeaways
- •Senator Ruben Gallego warned that holding a Senate vote on the CLARITY Act before ethics and stablecoin yield disagreements are resolved risks delaying US crypto market structure legislation.
- •The CLARITY Act would create a federal regulatory framework for digital assets and divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
- •Senate Majority Leader John Thune confirmed on August 7 that the chamber was postponing the vote, with the bill slated to be taken up first after lawmakers return from recess in September.
- •Gallego and Republican Senator Thom Tillis delivered compromise ethics language to the White House before the congressional recess but have not received a point-by-point response.
- •President Trump urged Congress to pass a fair version of the CLARITY Act, while White House crypto adviser Patrick Witt said the administration would negotiate with Democrats until the September vote but cannot afford to wait indefinitely.
Democratic Senator Ruben Gallego has cautioned that pushing the CLARITY Act to a Senate vote before lawmakers settle disputes over ethics and stablecoin yield risks setting US crypto market structure legislation back.
Speaking at the SALT Wyoming Blockchain Symposium on Wednesday, Gallego said the crypto industry should encourage Senate Democrats and Republicans to keep negotiating rather than push for an immediate vote. He noted that lawmakers still had to address the bill's Agriculture Committee portion, assemble the broader package, and determine how to send it to the House.
The CLARITY Act would establish a federal framework for digital assets and divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, making the timing of any Senate vote consequential for how quickly a market structure framework can move through Congress. On Aug. 7, Senate Majority Leader John Thune confirmed to Cointelegraph that the chamber was "punting" the vote and said CLARITY would be queued up "first thing" after lawmakers returned from recess in September.
"Don't go for a fast vote," Gallego said. "A fast vote gets you a fast result, but I'm not sure it's the result you want." He added that Congress still had a lot of steps to complete and that "any premature movement is going to set it back further."
Gallego says White House has not answered ethics proposal
Gallego said he and Republican Senator Thom Tillis submitted compromise ethics language to the White House before the congressional recess but had not received a point-by-point response. He said sufficiently strong ethics restrictions were necessary to attract Democratic support and advance the bill.
"We've been sending offers over and over again to the White House, and they've been coming back either blank, or they've come back even slightly further back, or we've heard nothing," Gallego said.
Cointelegraph reached out to the White House for comment but did not receive a response before publication.
His remarks follow renewed pressure from the administration. On Wednesday, Trump urged Congress to pass a "fair version" of the CLARITY Act during a White House appearance with crypto executives. White House crypto adviser Patrick Witt previously said the administration would negotiate with Democrats until the September vote but "can't afford to wait forever."
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