Republican Senator Expects Democratic Support for U.S. Cryptocurrency Market Structure Bill

Although Congress remains in recess until September, senators advocating for digital asset market structure legislation expect to receive bipartisan support.

At the blockchain forum in Jackson Hole, Wyoming, on Tuesday, Senate Banking Committee Chairman Tim Scott expressed hope that some Democrats would work with Republicans to advance the Digital Asset Market Clarification Act (CLARITY). Previously, the U.S. stablecoin legislation (GENIUS) had been passed.

The senator from South Carolina said he has been working to reach out to Democratic legislators outside the Banking Committee to garner support for their votes.

"We had 18 Democrats vote in favor of the GENIUS Act," Scott said, "I believe that at least 12 to 18 Democrats may support more complex market structure legislation, although there is considerable resistance."

Before the House passed the CLARITY Act on July 17, Scott stated that the Banking Committee plans to introduce its version of the digital asset market structure bill by the end of September.

A draft Senate bill was released in July titled the Responsible Financial Innovation Act, aimed at expanding the CLARITY Act, but it may differ from the House legislation.

What are the realistic expectations for bipartisan support?

The Republicans have a slim majority in the Senate, which means they need support from some Democratic legislators to pass cryptocurrency market structure legislation. In addition to Scott's remarks in Wyoming, Democratic ranking member Senator Elizabeth Warren also commented on the CLARITY Act during the congressional recess.

"We need cryptocurrency regulation," Warren said in an August 10 interview, "but we don't need regulations written by the crypto industry... We need regulations that limit corruption and official trading, and we also need to restrict the potential destructive power of cryptocurrency on the economy."

Over 70 House Democrats joined Republicans in passing the CLARITY Act in July, suggesting that both parties in the Senate may support the bill. The Senate is expected to end its recess on September 2.