Clarity Act Still Viable, Novogratz Says Ahead of Senate Vote
In brief
- Novogratz signals renewed momentum for Clarity Act after intensive weekend negotiations
- Government ethics language remains a major sticking point for passage
- Senate procedural vote Tuesday could advance bill toward full consideration
- Revised 630-page version unveiled Thursday with DeFi and other provision changes
Novogratz Sees Path to Floor Vote
Novogratz wrote on X that "Clarity isn't dead!! Lots of negotiating over the weekend" and expressed confidence the bill would advance. "My instinct is the bill makes it to the floor," he said, underscoring his belief that Tuesday's procedural vote will succeed.
The Tuesday vote isn't final — clearing this hurdle would allow the Clarity Act to move toward full Senate consideration and further amendments. But the window is tight. There's a narrow legislative window before the midterms, making the stakes extraordinarily high.
Ethics Rules Remain the Sticking Point
Government ethics language has emerged as the largest remaining obstacle. Novogratz identified this as the critical factor determining the bill's fate. "It all depends on if we get the White House to move on ethics to see if we get a law," he said.
Several major disputes remain unresolved, but negotiators have made tangible progress. The Senate Banking Committee advanced the legislation in May by a bipartisan 15-9 vote. In July, lawmakers released an updated text combining work from the Senate Banking and Agriculture committees.
A revised version was unveiled Thursday — roughly 630 pages containing changes dealing with decentralized finance and other issues. This latest iteration reflects weeks of back-and-forth between Democrats and Republicans.
The Stakes Are Enormous
Senator Lummis, one of the leading architects of U.S. cryptocurrency market structure legislation, noted that Democratic lawmakers have secured more than 100 requested changes to the bill. If the Clarity Act fails, another realistic opportunity to establish market structure rules might not come until 2030.
Patrick Witt, executive director of the President's Digital Assets Advisory Council, also struck an upbeat tone. "Bad day to be a Clarity Act doomer," he wrote on X, reflecting confidence among administration officials that the bill will advance.
