U.S. Senate Banking Committee Chairman Tim Scott is hopeful that the crypto market structure bill, the CLARITY Act, will pass before the August recess.
During an interview with FOX Business on Thursday, Scott said,
We’re in the red zone. I just want to have thirteen of thirteen Republicans on board. That makes it easier for us to have a bipartisan markup, in May, is my hope, and we’ll get this thing to the floor of the Senate.
In football, the red zone is an area close to the goal line. As such, Scott signaled that the elusive markup could be possible this month, counting on all 13 Republicans to help fast-track the process.
If the markup is successful, Scott added, the final Senate floor vote could happen in June or July.
The market outlook is 50/50
But the ethics issues, especially with President Donald Trump’s vast interest in crypto, were yet to be addressed. It has been raised by Democrats like Sen. Ruben Gallego (D-AZ).
For top-ranking member Elizabeth Warren (D-MA), corruption concerns linked to Trump’s crypto empire, the tokenization loophole, and anti-money laundering (AML) provisions have been key deal breakers.
In fact, law enforcement has also raised concerns over blanket developer protections.
Although the stablecoin yield has been the most significant roadblock to the bill since January, insiders are positive that it has been addressed.
Now, the focus will be on Republicans if they can mark up the bill and send it to the Senate floor for a vote. The committee is made up of 24 members, dominated by 13 Republicans. If the unity front by Republicans is achieved, they could advance the bill.
But PunchBowl News reported that Sen. John Kennedy (R-La.) was withholding his support, citing frustrations with the stalled Senate housing bill. As such, Chair Scott will have to win over at least one Democrat to fill the gap and get 13 votes.
The likely split-up of the committee vote was also being reflected across markets. As of writing, prediction site Kalshi showed the market was nearly 50/50 on the crypto bill’s passage before 2027.
The passage odds were even lower at 38% for August, the deadline Republicans expect the bill to reach the president’s desk.
Final Summary
- Senate Banking Committee Chair Tim Scott expressed hope for a May markup for the crypto bill if all 13 Republicans rally behind it.
- However, Sen. John Kennedy (R-La.) reported a holdout could derail this plan and force Republicans back to the drawing board.