White House crypto adviser Patrick Witt on Sunday blamed Senate Democrats for delaying the CLARITY Act before the August recess. His criticism followed Senate Majority Leader John Thune’s procedural filing to bring the bill to the floor in September.
The Senate adjourned without voting on the measure after an overnight session that ended Friday morning. Lawmakers will return on September 14. Supporters then have a narrow window to gather bipartisan backing and resolve disputed sections during the three-week September work period.
Witt accused Senate Minority Leader Chuck Schumer and other Democrats who support crypto policy of blocking an initial vote. In an X post, he said they “pulled out all the stops to block a mere procedural vote” before the recess. He also said Democrats requested another extension for negotiations.
However, Democrats have sought revisions covering government ethics, financial crime controls, and stablecoin rewards. Talks have also covered restrictions on digital asset businesses linked to federal officials. Senators and White House officials continue negotiating those matters.
Witt said Congress has worked for years to create a crypto market framework. He added that Senate talks on the CLARITY Act have continued since last summer. He warned that the measure’s prospects would fall sharply without progress by September 15.
Meanwhile, Thune filed cloture on the motion to proceed to H.R. 3633, according to the Senate Daily Press. The filing begins the process for limiting debate and moving toward a floor vote. It does not mean the Senate has approved the legislation.
The filing says senators seek to “bring to a close debate on the motion to proceed” to the bill. The chamber can consider that motion after returning from recess. Its schedule lists the next session for 3 p.m. on September 14.
The CLARITY Act would create federal rules for digital assets and divide oversight between two agencies. It would define when tokens fall under securities or commodities law. The framework would assign specified duties to the Securities and Exchange Commission and Commodity Futures Trading Commission.
Moreover, the cloture motion needs 60 votes to clear the Senate’s procedural barrier. Republicans hold 53 seats, so at least seven Democrats or independents must join them if every Republican votes yes. Attendance or Republican defections could raise the number of outside votes required.
The Senate leaders may need eight Democratic votes if only 52 Republicans participate. After cloture, the Senate would still need to complete debate and hold a separate vote on passage. It could then send amended text back to the House or seek a final agreement.
Negotiators still differ over stablecoin rewards and rules aimed at preventing financial crime. Democrats also want tighter limits on crypto ventures involving government officials. Banks have opposed language that could let crypto firms compete for deposits through rewards on customers’ stablecoin holdings.
Crypto Council for Innovation CEO Ji Hun Kim said the group plans to contact lawmakers during the recess. The organization will seek support from Republicans and Democrats before September. The bill must also compete with other Senate business before campaigning for the November midterm elections takes more floor time.
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