Crypto▼ Bearish
CLARITY Act Enters 'Walking Dead' State as SEC Prepares Crypto Rules
Senate votes Sept. 15 on CLARITY Act; Bitwise CIO says bill in limbo. SEC advances parallel rules on custody, tokenization, and fundraising. Atkins calls it a 'regulatory bridge'.
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The Senate will hold a procedural vote on the CLARITY Act on Sept. 15 after missing its August window. Bitwise Chief Investment Officer Matt Hougan told clients the delay puts the bill in a “walking dead” state – alive politically but unable to reach final passage. U.S. Senator Jim Risch (R-ID) issued a statement Aug. 8 that the Senate would start the process of passing the legislation on that date. Senate Majority Leader John Thune (R-SD) filed cloture on the motion to proceed hours earlier, fixing the vote for 2:15 p.m. EDT. The question before senators is whether to take up the bill, not whether to pass it.
Risch’s statement framed the September effort around consumer protection and U.S. competitiveness. “On September 15th, the U.S. Senate will start the process of passing the CLARITY Act,” Risch said. “The stakes couldn’t be higher.” He added that failure to pass the bill would leave Americans vulnerable to scams and fraud while ceding jobs and investment to overseas competitors.
Clearing the procedural hurdle requires 60 votes, meaning at least seven Democrats must join the 53-seat Republican majority. Talks remain open on ethics requirements, illicit-finance provisions, and reconciling Senate Agriculture Committee language. The new timetable keeps the legislation alive while extending uncertainty over when Congress can establish a permanent federal framework for digital asset markets.
Hougan had outlined this scenario in a memo before the August window closed. “The bill will enter a ‘walking dead’ state,” he wrote. “Nothing can actually kill it, but it will lurch along.” His characterization matches the current legislative limbo: no final resolution, but no death either.
The prolonged uncertainty increases the near-term significance of U.S. Securities and Exchange Commission Chair Paul Atkins’ rulemaking agenda. Atkins has indicated that regulators can address many of the same issues Congress is tackling if lawmakers do not finish the bill. He outlined an interim approach in February, telling the Senate Banking Committee that the SEC and Commodity Futures Trading Commission intended to provide a “regulatory bridge” while Congress works on market structure legislation.