Senate Majority Leader John Thune was on Hannity last night on Fox News, where he discussed pending legislative actions in the Senate.
One of the top legislative ambitions is the SAVE Act, a bill that would require proof of citizenship to vote in elections, an important issue for the Republican Party but one the Democrats do not support. Another issue mentioned was the CLARITY Act, crypto market infrastructure legislation that would provide consumer protection while enabling a clear path for digital asset innovation. This is another bill where Democrat support is rather thin.
Thune did say there were several items he thought would be accomplished before the August recess, which will halt all movement in the Senate until the Fall. The Senator said they will “probably” have a vote on the CLARITY Act. “We will see if the Democrats give us the vote to get on that.”
The slim majority in Congress makes it exceptionally difficult to pass partisan legislation, as approval comes only with compromise. While some Democrats will support digital asset legislation, not all will, and reaching 60 votes in the Senate is important to avoid a filibuster, which could kill the bill.
As the Senate wrangles over various issues, including the CLARITY Act, an increasing number of establishment financial services are demanding that Congress approve the bill. Recently, Goldman Sachs, Franklin Templeton, Fidelity, Schwab, and BlackRock all issued statements in support of the bill. Each of these firms is already engaged in the crypto sector, and updated rules help to validate their offerings as financial services evolve.
While the above support the bill, traditional banks remain concerned about rising competition, which could diminish their revenue as customers switch to superior services.
While there are no guarantees, some observers believe that even if the Senate fails to pass crypto legislation, the Securities and Exchange Commission and Commodity Futures Trading Commission will move forward with updated rules as opposed to a vacuum of regulation and affiliated shortfalls for consumer protections, support of innovation in an area that has been pegged for dominance by the current Administration.