CLARITY Act Clears Senate Banking Committee, Faces Tight Deadline

The CLARITY Act, a crucial piece of legislation for the crypto market, has cleared another hurdle in its journey through the US Congress. On May 14, the Senate Banking Committee voted 15-9 to advance the bill, which aims to resolve the long-standing regulatory conflict between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Under the proposed framework, the CFTC would oversee most digital commodities, while the SEC would continue regulating crypto assets classified as securities. The bill must now clear the full Senate and House by July 27 to avoid being pushed into the crowded fall political calendar.

The next few months will be crucial in determining whether the bill becomes law this year or gets delayed again. Lawmakers face two major deadlines: the House recess begins on July 27, and the Senate recess starts on August 10. If the legislation misses these windows, it could be pushed into the crowded fall political calendar, where passage becomes significantly harder.