The U.S. administration is aiming for a July 4 deadline for the House to pass the Digital Asset Market Clarity Act, according to Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets. Addressing attendees at Consensus Miami, Witt remarked, “I think that would be a tremendous birthday present for America, celebrating our 250th.” The administration plans to have Senate Banking Committee markup this month, followed by a Senate floor vote in June and House passage before July 4. Despite acknowledging the tight schedule, Witt expressed confidence in its achievability, stating, ‘There’s not a lot of slack left in the rope right now. But it is an achievable timeline.’
The legislation’s path forward has improved after Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) reached a compromise on stablecoin yield provisions last Friday. The deal bans bank-deposit-equivalent yields but permits activity-based rewards related to spending. Witt noted, ‘Crypto is unhappy, banks are unhappy, but they’re both about equally unhappy. And so we know that we got the right compromise.’
Industry leaders and legislators have provided mixed views on the timeline’s feasibility. Paul Grewal, Coinbase’s chief legal officer, asserted Wednesday, “I’m very confident we’re going to see the Clarity Act pass this summer at the latest,” urging the banking trade not to ‘snatch defeat from the jaws of victory.’
Last week, Senate Banking Committee Chairman Tim Scott described the bill as being in the ‘red zone,’ while Senator Kirsten Gillibrand offered a more cautious outlook, suggesting Wednesday that it could be completed by the first week of August “if we’re lucky.”
Witt emphasized the importance of the legislation for U.S. leadership in digital assets, cautioning that failure to set standards would result in following others’ rules, ‘And God forbid it’s China that’s ultimately writing those rules.’
The Clarity Act has faced slow progress through Congress, with previous attempts stalling as crypto and banking interests failed to agree on key issues. Ripple CEO Brad Garlinghouse warned that the next two weeks are critical, stating if Senate markup doesn’t occur soon, ‘the likelihood of the bill passing is going to drop precipitously’ as midterm politics intensify.