House Republicans say they can pass a sweeping piece of legislation that could codify digital commodities into the wider financial system, and they feel confident the Senate will help carry their bill to the finish line.
The CLARITY Act, a House Republican bill that would regulate the cryptocurrency market and divide up who has authority over which parts, is working its way to the House floor. On Tuesday, it was passed out of the relevant committees with bipartisan support.
The bill could become one of the first and most sweeping pieces of legislation passed by Congress in the cryptocurrency space.
“Everybody understands the importance of actually getting a federal regulatory framework, so I believe we’re actually in a position to get this done this Congress,” Rep. Mike Lawler told NOTUS. “It’ll come after reconciliation is done, but I believe there is an impetus on both sides to get this done.”
House Republicans have some reasons to be optimistic the bill will pass and argue that the political climate around crypto is different now, which some point to as a reason why they’re hopeful. Cryptocurrency regulation has vehement support from President Donald Trump, who gave Congress an August deadline to pass legislation in the area.
“The President has made it clear that he wants digital asset legislation on his desk by August 1. I expect the House will move quickly and will pass CLARITY with strong bipartisan support,” Rep. Dusty Johnson, one of the bill’s co-sponsors, told NOTUS in an emailed statement.
Another reason they’re optimistic is they think they have Democratic buy-in, reflected in the bipartisan votes the legislation got out of committee last night.“I am proud that the Financial Services Committee, along with the House Agriculture Committee, took this vital step in advancing the bipartisan CLARITY Act through our Committees,” said Rep. French Hill, chair of the House Financial Services Committee, in a statement after the vote. “I thank my colleagues on both sides of the aisle for their support as this bill is one step closer to becoming law.”
Last year, a bill that was similar to the CLARITY Act passed the House with 71 Democratic votes. But the Senate, then led by Sen. Chuck Schumer, never took it up.
The Senate is currently working on its own crypto legislation, which is on its own timeline. It has failed to get to a final vote already once this year, but is now on track to get a floor vote soon.
There’s been much hand-wringing over which senators will ultimately support it. But on the House side, Rep. Glenn Thompson, a co-sponsor of both the CLARITY Act and the House’s crypto bill last year, sees the Senate’s commitment to working on this issue as a good sign for the House bill.
“The Senate is working a lot on the GENIUS Act,” Thompson told NOTUS. “I mean they’re already working in this space, so I think we’re going in the right direction.”
House Republicans are closely watching how the GENIUS Act progresses and hope it gives their legislation a jolt.
“There will be a push from both committees and from the members who have led on [CLARITY Act] to encourage the Senate to take up the package,” a Republican aide familiar with the legislation told NOTUS.
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Samuel Larreal is a NOTUS reporter and an Allbritton Journalism Institute fellow.