Grayscale Urges Senate to Pass CLARITY Act Before August Recess

Grayscale, a major digital asset management firm with $35 billion in assets under management (AUM), has sent an urgent letter to Senate leaders calling for an immediate floor vote on the CLARITY Act. 

The push comes as the August recess is approaching and threatens to delay the bill.

Grayscale Pushes Senate for CLARITY Act Vote

Grayscale Investments’ parent company, Digital Currency Group (DCG), has sent an urgent letter to Senate leaders John Thune and Chuck Schumer, calling for a floor vote on the CLARITY Act before the August recess.

The company said months of bipartisan work have already addressed major issues around regulatory jurisdiction, investor protection and safeguards for developers.

“After months of bipartisan work, the industry is ready for CLARITY.” 

The push comes just days before the Senate is expected to leave Washington for its August break. The Senate must reach a deal with Democrats before the bill can move forward, as Republicans hold 53 seats and need at least seven Democratic votes to overcome a filibuster.

Grayscale’s Head of Research Zach Pandl said the lack of clear rules is also limiting crypto investment from large institutions, including pension funds and endowments.

Law Enforcement Group Adds Support

Grayscale’s request comes a day after the Major Cities Chiefs Association (MCCA), one of the country’s leading law enforcement organizations, sent a letter 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.

Both the endorsement and the bill are another important boost as lawmakers try to build enough support before the recess.

Crypto Industry Faces August Deadline

The CLARITY Act has already passed the House and cleared the Senate Banking Committee in a 15-9 vote, but it has yet to reach the Senate floor.

One major issue remains stablecoin rewards. Traditional banks are concerned that allowing stablecoin issuers to offer certain forms of yield could encourage customers to move deposits away from banks.

At the same time, crypto-friendly lawmakers including Sen. Cynthia Lummis have raised concerns about whether the latest draft gives enough protection to developers who create non-custodial software.

These disagreements have made the final Senate vote harder to secure.

If the Senate does not vote before the Aug. 8 recess, the bill could lose momentum as lawmakers turn their attention to the upcoming midterm elections.