Grayscale Pushes Senate to Vote on CLARITY Before August Recess

Negotiators still disagree on several provisions. Ethics restrictions covering federal officials and digital tokens remain unresolved, including which agency enforces them and whether states get enforcement powers. Stablecoin rewards are another sticking point. Banking groups argue yield-like incentives could pull deposits from traditional lenders. Crypto companies say broad restrictions would limit competition and product design.

Lawmakers are also reviewing protections for developers who write non-custodial software. Supporters want the bill to distinguish software creation from financial intermediation. That distinction could affect applications, wallets and infrastructure providers that never control customer assets. Countering the financing of terrorism provisions remain part of the talks. The final text will determine how compliance duties apply across exchanges, brokers, protocols and software providers.

Treasury Secretary Scott Bessent has pushed Congress to finish the legislation before recess. He described negotiations as near the “1-yard line” and urged lawmakers to complete the remaining work.

Grayscale linked the delay to American competitiveness. The firm said clearer rules in Singapore and Abu Dhabi could attract capital, companies and technical workers. Stable federal standards would support exchange-traded products, token markets, custody services and institutional allocations, the company said.

Zach Pandl, Grayscale’s head of research, said uncertainty limits participation from pensions and endowments. Those investors often require settled custody, classification, disclosure and trading rules before approving allocations, he said.

Bitcoin, Ether, XRP, Cardano and Solana all traded lower that session. Traders are watching whether Senate leaders schedule debate, release compromise language or postpone action until lawmakers return in September.