Clarity Act Faces Critical Vote In U.S. Senate

The Clarity Act that aims to provide a regulatory framework for cryptocurrencies such as Bitcoin (CRYPTO: $BTC) faces a critical vote in the U.S. Senate on Sept. 15.

Analysts say it remains unclear whether the Clarity Act legislation has enough votes to pass a vote in the Senate as last-minute lobbying by the cryptocurrency industry heats up.

The Clarity Act would establish a new regulatory structure for digital assets. The crypto industry is supportive and sees the legislation as critical to the long-term growth of the sector.

However, the Clarity Act has languished in the Senate for months as lawmakers debate its merits and the future of Bitcoin and other digital assets such as stablecoins.

The bill cleared the Senate Banking Committee in May of this year but has stalled as Senate leaders have struggled to wrangle the 60 votes needed for approval.

With full Senate attendance, at least seven Democrats would need to support the Clarity Act for its to pass a vote and head to U.S. President Donald Trump's desk for his signature.

While crypto companies support the legislation, U.S. banks have lobbied against it, warning that the bill needs to stop interest payments on stablecoins that could lead to a deposit flight at large lenders such as Bank of America (NYSE: $BAC) and Citigroup (NYSE: $C).