Gallego warns rushed CLARITY vote could stall crypto reforms

At the SALT Wyoming Blockchain Symposium on Wednesday, Sen. Ruben Gallego warned that a rushed Senate vote on the CLARITY Act could derail broader U.S. crypto market-structure legislation. He said unresolved disputes over ethics language and stablecoin yield rules must be settled first.

Gallego urged industry advocates not to press Senate leaders for an immediate procedural vote. He identified key unsettled elements: compromise ethics language, a controversial Agriculture Committee provision and final rules on stablecoin yields. All parts must be folded into a single package and sent to the House before the bill can become law.

The Senate’s 60-vote threshold adds a practical constraint. Gallego warned a quick procedural vote might occur before negotiators assemble the bipartisan coalition needed to clear that barrier. He warned: ‘Don’t go for a fast vote. A fast vote gets you a fast result, but I’m not sure it’s the result you want.’ He added that ‘any premature movement is going to set it back further.’

Gallego and Republican Sen. Thom Tillis delivered compromise ethics language to the White House before Congress recessed but have not received a detailed, point-by-point reply. Gallego reported: ‘We’ve been sending offers over and over again to the White House, and they’ve been coming back either blank, or they’ve come back even slightly further back, or we’ve heard nothing.’

The administration has pushed for faster action. Former President Donald Trump urged Congress to pass a ‘fair version’ of the CLARITY Act at a White House meeting with crypto executives. White House crypto adviser Patrick Witt said the administration will negotiate with Democrats up to the planned September vote but ‘can’t afford to wait forever.’

Senate leaders have delayed action until lawmakers return from recess. On Aug. 7, Senate Majority Leader John Thune described the chamber as ‘punting’ the vote and said CLARITY would be first in line when senators return in September.

The CLARITY Act would create a regulatory framework for digital assets, covering market structure, stablecoin oversight and other industry rules. The Agriculture Committee provision cited by Gallego concerns how certain crypto activities would be classified and regulated, an issue for lawmakers overseeing commodities and agricultural markets.

Gallego urged negotiators to resolve disagreements and agree on a path to the House before bringing the bill to the Senate floor. He noted that until negotiators, committees and both parties finish their work, procedural action in the Senate could fracture support and leave key issues unresolved.