Key Highlights
- Bill Hagerty urged the Senate to vote on the CLARITY Act, saying the U.S. cannot afford to fall behind in crypto regulation.
- He called for a public Senate vote to determine bipartisan support for the CLARITY Act.
- Ethics disputes and a White House review continue to delay progress on the CLARITY Act.
Senator Bill Hagerty (R-TN) has renewed calls for the Senate to move forward with the CLARITY Act, arguing lawmakers should bring the crypto market structure bill to the floor for a vote rather than allowing negotiations to continue indefinitely.
In an August 4 interview on Fox Business’ Mornings with Maria, Hagerty said the United States needs to establish clearer rules for digital assets and warned that delaying legislation could leave the country behind in financial technology.
“We are going to have to pass the act. There’s no way we can allow the United States to fall behind on everything digital,” he said.
Hagerty calls for Senate floor vote
Hagerty argued that the Senate should allow lawmakers to vote on the legislation publicly rather than continuing behind-the-scenes negotiations. He said a floor vote would show where members stand on crypto regulation and determine whether bipartisan support exists.
“We have to pass the CLARITY Act. I think the problem will be whether we pass it with Democrats. Right now they’re letting midterm politics get in the way. I think we should put it through a vote on the floor of the United States Senate and find out where Democrats stand,” he added.
The comments come as supporters of the legislation continue to wait for Congress to advance broader crypto market structure rules following the passage of the GENIUS Act, which established a federal framework for stablecoins.
Why CLARITY Act is still waiting
While Hagerty continued pushing for action, the Senate’s current agenda has seemingly shifted toward other legislative priorities ahead of the August recess.
Senate leaders are working on a continuing resolution aimed at extending government funding through December 1 to avoid a potential shutdown. Other issues, including sanctions legislation and budget-related measures, have also taken priority, leaving limited floor time for additional bills.
Moreover, Senate Majority Leader John Thune is working within a narrow procedural window to advance the bill before the August recess. Thune said the Senate will remain in session until it completes key legislative priorities, including government funding, Russia sanctions, nominations, and a possible cloture vote on the CLARITY Act.
Ethics dispute continues to hold up legislation
The delay follows ongoing disagreements over ethics provisions included in the CLARITY Act.
Republicans have argued that the bill contains strong safeguards related to government officials and crypto-related conflicts of interest. Meanwhile, Democrats have raised concerns over whether the enforcement mechanism provides enough independence.
Earlier this month, Senate Republicans introduced an updated CLARITY Act draft with ethics provisions aimed at addressing concerns over government officials’ involvement in digital assets while keeping the broader market structure framework intact.
Democratic lawmakers, including Senator Chris Murphy, criticized parts of the proposal, arguing that the enforcement language did not create sufficient protections against potential conflicts of interest.
The disagreement remains one of the main barriers to reaching a final agreement.
White House review of bipartisan proposal continues
The latest negotiations follow an earlier White House-backed ethics framework discussed in July that was negotiated with Senators Cynthia Lummis and Bernie Moreno as part of efforts to move the CLARITY Act forward.
Democrats opposed the proposal, arguing that it did not provide an independent enough enforcement mechanism for ethics requirements. The disagreement led Senators Ruben Gallego and Thom Tillis to work on a separate bipartisan compromise.
The Gallego-Tillis compromise would reportedly allow state attorneys general to take action if federal agencies fail to enforce ethics requirements. The proposal is currently under White House review, and lawmakers have not confirmed whether it has enough support to advance.
Also Read: Crypto Industry Rebuts Sheriffs’ CLARITY Act Objections as Vote Slips
