CLARITY Act Update: Treasury Chief Urges Senate Vote Before Recess

The CLARITY Act is entering its most critical week yet. U.S. Treasury Secretary Scott Bessent has urged the Senate to vote on the crypto market structure bill before lawmakers leave for the August recess. He also warned that further delays could weaken America’s position in the global digital asset industry.

Bessent Pressures Senate to Move CLARITY Act Forward

In a post on X, Treasury Secretary Scott Bessent called on the Senate to vote on the CLARITY Act “NOW,” arguing that the U.S. cannot afford to delay crypto regulation any longer.

Bessent claimed some Senate Democrats are hesitant to advance the bill because they fear opposition from Senator Elizabeth Warren and what he described as her “anti-crypto army.”

He also challenged Senate Majority Leader John Thune to put the legislation to a vote, questioning whether lawmakers would support American innovation or allow other countries to take the lead in the digital asset sector.

Quoting Bitcoin creator Satoshi Nakamoto, Bessent warned that the U.S. risks falling behind if Congress fails to act before the August break.

Law Enforcement Group Backs Latest CLARITY Act Draft

While political negotiations continue, the bill received fresh support from the Major Cities Chiefs Association (MCCA), one of the country’s leading law enforcement organizations.

In a letter sent to Senate Banking Committee leaders Tim Scott and Elizabeth Warren, the group endorsed the latest version of the CLARITY Act after revisions addressed several enforcement concerns.

The MCCA noted that updated Sections 10203, 10204 and 10309 now include state and local law enforcement agencies, giving them stronger authority to investigate digital asset-related financial crimes.

According to the association, these additions represent an important step toward improving crypto crime investigations without limiting enforcement powers.

DeFi Liability Rules Remain the Biggest Roadblock

Despite the new endorsement, negotiations remain stalled over two controversial sections of the bill.

One dispute centers on the ethics provision, with Democrats arguing that enforcement should not be limited only to the Department of Justice.

The second issue involves the BRCA provision, which protects decentralized finance (DeFi) developers from being held responsible for crimes committed by users on their platforms unless prosecutors can prove they intentionally facilitated money laundering.

The proposal also prevents many DeFi developers from being classified as money transmitters, a protection that has drawn criticism from some lawmakers.

With no bipartisan agreement yet, prediction markets now estimate only about a 26.5% chance that the Senate will pass the CLARITY Act before lawmakers begin their August recess.