Senate Committees Near Release of Updated Crypto Market Clarity Act

Lawmakers may release a new version of the Digital Asset Market Clarity Act as soon as next week, people following the effort told CoinDesk. The updated draft combines work from the Senate Banking and Agriculture Committees and adds more than 70 pages of text, according to one person briefed on the negotiations.

The bill aims to set federal rules for digital asset markets. Outstanding issues include ethics restrictions on senior government officials' business ties to the crypto sector, federal preemption of state rules, and appointments to the Securities and Exchange Commission and Commodity Futures Trading Commission.

Democrats have said they will not support a final bill without an ethics provision. One proposal under discussion would allow state attorneys general to sue for violations. Two Democrats who backed the Banking Committee's earlier version have warned they may withhold support if their concerns remain unresolved. The White House has not yet endorsed the merged text.

Advocates expect the bill could reach the Senate floor the week of July 20. The Senate has three remaining weeks in July and the first week of August before its calendar tightens. A defense spending bill may also compete for Senate time. Senator Ron Wyden wrote to leadership on Wednesday supporting the Blockchain Regulatory Certainty Act section, which would limit treating certain developers as money transmitters if they do not hold customer assets.