Comprehensive Review of the CLARITY Act’s Legislative Progress
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Streamlining the CLARITY Act: An Important Development
The CLARITY Act, a pivotal piece of legislation aimed at structuring the cryptocurrency market, is poised to advance more smoothly following the potential removal of a contentious amendment. This change could significantly ease the bill’s journey through the legislative process.
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Senate Crypto Bill Overcomes a Significant Barrier
As reported by Politico, Kansas Senator Roger Marshall has opted not to propose an amendment concerning credit card swipe fees during the Senate Agriculture Committee’s review of the crypto bill. This session is scheduled for Thursday, January 29. According to sources privy to the negotiations, this decision was reached over the weekend and is anticipated to garner wider support from the cryptocurrency sector.
Initially, Senator Marshall had introduced the amendment to promote competition among payment networks over credit card swipe fees, mirroring the objectives of the long-standing Credit Card Competition Act, a cause he has championed with Senator Dick Durbin of Illinois. However, recent discussions suggest that Marshall has decided against pursuing the amendment during the upcoming review.
The swipe fee amendment, backed by both Durbin and Senator Peter Welch of Vermont, was seen as a potential stumbling block. Certain Republicans favoring the crypto bill oppose the credit card provision due to its potential to pit major financial institutions against large retailers. Durbin himself is not expected to present the amendment, although a final decision is pending.
Potential Amendments on the Horizon
The proposed amendment has also captured the attention of the White House, with officials expressing concern that it could impede the bill’s progress, especially as the administration advocates for the measure’s advancement. One insider described the amendment as a threat to the bill’s success at a critical juncture.
Although Marshall’s amendment may no longer be in play, other modifications are still possible. Journalist Eleanor Terrett highlighted on X (formerly Twitter) that several amendments remain under consideration. These include proposals for ethics regulations for U.S. officials, a mandate for the Commodity Futures Trading Commission (CFTC) to maintain a minimum of four commissioners in consultation with minority parties, anti-fraud initiatives targeting crypto ATMs, and restrictions on foreign adversaries’ involvement in the crypto markets.
Bipartisan negotiations over the past two weeks have already postponed the markup initially set for January 15, yet the bill remains a point of contention between political parties. So far, only Republican members of the Senate Agriculture Committee have openly supported the legislation.
Nevertheless, the latest draft released on Wednesday, January 21, has been well-received by the broader cryptocurrency community. The industry has lauded the draft for its clear protections for noncustodial software developers and blockchain infrastructure providers. The bill focuses on intermediaries rather than protocols or end users, a distinction crucial for fostering innovation.
Moreover, the draft excludes regulations on stablecoin yields, a significant decision after Coinbase withdrew its backing for the Senate Banking Committee’s version of the bill.
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