U.S. Senator Ruben Gallego warned that moving the CLARITY Act toward a Senate vote before lawmakers resolve key disputes could undermine efforts to secure the support needed for passage, with disagreements over ethics and stablecoin yield still complicating negotiations.
Speaking at the SALT Wyoming Blockchain Symposium on Wednesday, the Arizona Democrat urged the crypto industry to back continued bipartisan talks rather than press lawmakers for an immediate floor vote, arguing that premature action could leave the legislation worse off.
“Don’t go for a fast vote,” Gallego said. “A fast vote gets you a fast result, but I’m not sure it’s the result you want.”
“Advancing too fast is a risk, but I don’t think there’s anything that you can do in order to stop that. You’re not going to stop innovation,” Gallego added.
Gallego said Congress still has several steps to complete before the digital asset market structure bill is ready, including work involving the Senate Agriculture Committee and assembling a broader package capable of surviving both chambers.
Ethics and yield disputes cloud Senate math
The more immediate hurdle is whether the bill can win the 60 votes needed to move forward in the Senate. Gallego said reaching that number would require stronger ethics provisions and progress on other unresolved issues, including stablecoin yield and illicit-finance safeguards.
He also said he and Republican Senator Thom Tillis had sent compromise ethics language to the White House before the August recess, but had yet to receive a detailed response.
The Senate is expected to hold an initial vote on Sept. 15 to decide whether to take up the CLARITY Act for formal debate, a step that would move the legislation into its next stage of consideration rather than represent final passage.
Gallego nevertheless struck an optimistic note, saying lawmakers could still “land this plane” if negotiations produce enough bipartisan support.
SEC moves ahead with its own crypto framework
While the White House pushes Congress to pass the CLARITY Act, the SEC has already taken another step toward reshaping crypto rules under existing securities law. The agency on Aug. 18 proposed “Regulation Crypto Assets,” a framework designed for certain crypto-related investment contracts.
The proposal would create two fundraising exemptions, allowing issuers to raise up to $5 million over four years or as much as $75 million annually under separate requirements.
It would also create a safe harbor under which certain crypto assets would no longer be treated as tied to an investment contract once an issuer has completed or permanently ended the managerial efforts promised to investors.
