The CLARITY Act faces a September 15 deadline in the Senate, and Digital Chamber CEO Cody Carbone says a quick fix isn't likely if it fails. Instead, he expects regulators to act on their own, with a slim chance that pieces of the bill get revived through unrelated legislation.
No Quick Fix After a Failed Vote
With the Senate vote just days away, Digital Chamber CEO Cody Carbone laid out what happens if the CLARITY Act fails to clear its September 15 hurdle. Asked whether the bill could still pass in a lame-duck session or early next Congress, Carbone said he thinks that is unlikely. If the bill cannot move forward in the coming weeks before the election, he expects a different path to take shape.
Regulators Step In Instead
Carbone said the most immediate response would come from regulators themselves. According to Coinpedia: "You're going to see the regulators moving fast and furious", he said, pointing to SEC Chairman Paul Atkins, who is already signaling the agency will implement CLARITY's goals through guidance and rulemaking rather than wait on Congress. Carbone expects that to start with an innovation exemption from the SEC, arriving quickly if the bill stalls.
A "Skinny" Version Could Emerge
Carbone also outlined a second path: breaking the bill apart. He noted that CLARITY isn't one clean piece of legislation but an amalgamation of roughly 40 to 50 separate bills merged into one package, a structure that could let lawmakers pull out individual pieces and attach them to must-pass legislation later this year. He cited the National Defense Authorization Act, which has passed every year for six decades, as a likely vehicle.
Carbone was cautious about that approach's odds, saying he doesn't know if it will succeed. He was more confident that regulators stepping in independently is the likely outcome, calling that the regulatory framework for the next two years, primarily through agency action.
Source: Coinpedia Fintech News
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