Grayscale Urges Senate to Pass CLARITY Act Before August Recess

Grayscale Head of Research Zach Pandl said the lack of clear rules is limiting crypto investment from large institutions, including pension funds and endowments. “Without federal clarity, many of these allocators stay on the sidelines,” he told the Washington Examiner.

One major obstacle remains stablecoin rewards. Traditional banks have argued that allowing stablecoin issuers to offer yield could pull deposits out of the banking system. Crypto-friendly lawmakers including Senator Cynthia Lummis have also raised concerns about whether the latest draft gives enough protection to developers who create non-custodial software. These disagreements have made the final Senate vote harder to secure.

Republicans hold 53 seats in the Senate and need at least seven Democratic votes to overcome a filibuster. The Majority Cities Chiefs Association, a law enforcement group, endorsed the latest version of the bill after revisions addressed enforcement concerns. That endorsement could help sway swing votes, according to aides familiar with the negotiations.

The CLARITY Act delay risks US crypto lead, Haridopolos warns earlier this month. If the Senate does not vote before the recess, the odds of passage this year could sink further. No floor vote has been scheduled.

Grayscale’s appeal comes a day after the Major Cities Chiefs Association sent its own letter to Banking Committee leaders Tim Scott and Elizabeth Warren, urging passage of the bill.