CLARITY Act Stalls in Senate Amid Banking Opposition and Party Divisions

The Digital Asset Market Clarity Act has remained in the Senate one year after the U.S. House passed it, facing opposition from banks and party divisions. Supporters expect the Senate to vote before the August recess. According to Odaily, industry groups Coin Center and the Blockchain Association said Section 604 is a key provision for protecting open-source innovation. The section is intended to prevent non-custodial blockchain developers, node operators, and validators from being classified as federal money transmitters. CertiK U.S. government affairs head Stefan Muehlbauer said removing Section 604 could blur the line between software development and financial services, subject developers to the Bank Secrecy Act, and trigger constitutional challenges under the First Amendment. Openpayd CEO Iana Dimitrova said the growing use of stablecoins for cross-border value transfers has made the need for a federal regulatory framework clearer. The bill also addresses accounting standards, recognizes that SEC Staff Accounting Bulletin No. 121 has been withdrawn, and would bar the SEC from reimposing the same crypto custody accounting requirements without a full notice-and-comment process. Gomining CEO Mark Zalan said bitcoin still faces regulatory gaps, including tax treatment.