Clearity Act in the Senate: the Negotiation Deadlock at the Heart of Agricultural and Banking Issues

Negotiations around the Clarification Act are stagnating in the U.S. Senate, revealing deep divisions among the various congressional committees. The situation becomes particularly complex with the involvement of the Agriculture Committee, whose position diverges significantly from other legislative bodies.

The Agriculture Committee Faces a Bipartisan Deadlock

The Agriculture Committee is stuck in its efforts to craft a consensus version of the Clarification Act. Contrary to initial expectations, bipartisan consensus could not be reached within this committee. Only Republican members are advancing their own version of the bill, leaving Democrats on the sidelines. This split within the Agriculture Committee exposes fundamental disagreements on how to approach digital asset regulation, especially regarding exemptions and scope.

Banking Committee Disagreements Complicate the Situation

The Senate Banking Committee is also facing its own difficulties in resolving disputes over the Clarification Act. The version proposed by this committee remains unfinished, with delays piling up. These successive delays at both the agriculture and banking committee levels create a legislative paralysis that is stretching on.

Uncertain Timeline and Concerns Over Innovation Exemption

The scheduled hearings for the upcoming week remain uncertain. This legislative slowdown raises growing concerns about the impact on the SEC’s innovation exemption, which was initially set to be implemented in January. The risk of further legislative delays could postpone the implementation of this exemption, affecting the entire digital financial innovation ecosystem.

The mobilization of the Agriculture Committee and other Senate actors remains crucial to unlocking the situation and allowing the Clarification Act to move toward a final vote.