U.S. Representative French Hill, House Financial Services Chairman, called for bipartisan support to advance the Clarity Act, a long-pending cryptocurrency market structure bill, ahead of a September 15 Senate vote.
Speaking to Fox Business on Thursday, Hill stated that Democrats and Republicans have narrowed their differences in drafting the legislation. The bill was originally passed by the House of Representatives in July with 78 Democratic votes but has stalled in the Senate this year.
Hill framed the effort as essential to maintaining American leadership in financial services and distributed ledger technology. "Can Democrats work with Republicans and make sure America leads the world in distributed ledger technology and financial services?" he asked.
Key Sticking Points
One of the remaining contentious issues is an ethics provision that would ban government officials from promoting or profiting from cryptocurrency. Hill suggested this concern could be resolved by passing the legislation, which would place all participants under a regulatory framework overseen by U.S. commodity, securities, and banking regulators.
The Senate bill has faced resistance largely due to disagreements between the banking lobby and crypto companies over stablecoin yield payments to customers. A new draft addressing ethics concerns circulated in July, sparking criticism from some Democratic lawmakers who sought additional amendments.
Industry Support
Coinbase, America's largest crypto exchange, has praised the bipartisan work on the legislation. The company's Chief Policy Officer noted in July that while some Democrats opposed the bill, younger Democratic lawmakers supported its passage.
The Clarity Act creates a regulatory framework that distinguishes between digital assets classified as securities, commodities, or stablecoins, clarifying oversight responsibilities among federal regulators. Cryptocurrency companies have long sought such regulatory clarity.
