Key Takeaways
- Senator Bernie Moreno declared CLARITY Act negotiations over, blaming Democrats for its potential failure.
- Some Republicans oppose the bill, fearing deposit flight could hurt community banks and farm loans.
- The bill needs 60 votes to pass, but unresolved ethics disputes make swaying enough Democrats unlikely.
CLARITY Act Negotiations Finished, Democrats Will ‘Have a Choice to Make’
The debate in anticipation of the U.S. Senate discussion on the Digital Asset Market Clarity Act is nearing its end.
Senator Bernie Moreno has disregarded additional exchanges between Democrats and Republicans, claiming that the negotiation phase had finished.
On social media, Moreno stressed that there was “absolutely nothing to ‘iron out.’” clarifying that an agreement was reached weeks ago and all parties to that agreement “would be expected to keep their commitments.”
“The eleven months of negotiations between Senate Republicans and Democrats have officially ended and every Senator will have the opportunity to cast their vote,” referring to the cloture filed by Senate Majority Leader John Thune on the motion to proceed to the CLARITY Act on September 15.
Moreno pinned the responsibility for CLARITY’s failure on Senate Democrats, declaring that they would have to choose between handing the industry to China or embracing American exceptionalism to perpetuate U.S. industry dominance.
“It’s an easy choice if you love America!” he concluded.
While Moreno believes that all 53 Republican senators will vote in favor of the bill, some have voiced concerns about the effect of passing CLARITY on community banks.
Senators Jerry Moran and Josh Hawley, both Republicans, have publicly said they would oppose the CLARITY Act under its current form.
In statements made to Politico, Hawley said that people in Missouri, his state, were very worried. “Farmers and ranchers, in particular, are very, very concerned that deposit flight in small towns could absolutely kill their ability to get ag loans,” he stated.
Moran also raised similar arguments against CLARITY, citing “consequences on the people who rely upon banks in small towns across Kansas” as the reason behind his newfound opposition.
Even with all Senate Republicans on board, the CLARITY Act would need 60 votes to pass, meaning that the GOP would have to sway at least 7 Democrats to its side. Some analysts deem this goal unlikely, as the ethics provision, still being discussed with the White House, is a pain point for CLARITY’s success due to President Donald Trump’s crypto endeavors.
