White House warns: window for Clarity Act closing fast

The White House is raising the alarm over the progress of the Clarity Act, the US bill intended to regulate the market structure for crypto. Patrick Witt, executive director of the White House Digital Assets Advisory Council, warns that the legislative window is closing fast. A procedural vote in the Senate is scheduled for 15 September, but Democratic support is so far entirely absent. Forbes reports.

In brief:

• Patrick Witt and Treasury Secretary Scott Bessent both call on both parties to support the procedural vote on 15 September.
• The Clarity Act has now incorporated 114 Democratic amendments, but not a single Democratic senator has publicly voiced support.
• At least 6 Democratic votes are needed for the vote; a failure would seriously damage American leadership in digital assets, according to Witt.

Witt: a failed vote helps no one

Witt told Semafor that a failed procedural vote gives no one what they want. He added that it is unclear when the bill will get another chance if the vote fails this week. “Who knows,” Semafor quoted him as saying.

Treasury Secretary Scott Bessent is also calling on both parties in Congress to back the so-called “motion to proceed”. According to both of them, more is at stake than legislation alone: a failure would undermine the international position of the United States in the field of digital assets.

Democrats do not yet support the bill

The most recent version of the Clarity Act contains 114 amendments added at the request of Democrats. Yet so far not a single Democratic senator has publicly indicated support for the bill, Politico reports.

At least 6 Democratic votes are needed for a successful procedural vote. The Senate already revised the Clarity Act earlier with new provisions on DeFi registration. Whether those changes are enough to win over Democrats will become clear on 15 September.

The outcome of the vote is also being watched closely outside the US. Coinbase chief executive Brian Armstrong already stated earlier that crypto regulation is coming regardless, but the question remains at what pace and with what content.