The U.S. Senate is set to consider two significant pieces of legislation this week: the CLARITY Act, which aims to establish a federal regulatory framework for cryptocurrency, and a bill to regulate college sports. These votes come as senators return to Washington for a limited session before the midterm elections.
The CLARITY Act, designed to clarify federal rules for digital currencies and tokens, proposes dividing oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CTFC). Proponents, including President Trump, argue it is a crucial step for the U.S. crypto industry.
"We ended the war on crypto once and for all," President Trump stated. "Now we need Congress to take the next step by passing the Clarity Act."
The bill has bipartisan support, but faces opposition from some Democrats. Senator Adam Schiff (D-Calif.) and Senator Elizabeth Warren (D-Mass.) have raised concerns about ethics provisions, particularly in light of President Trump's reported $1.4 billion in cryptocurrency earnings last year. Democrats are seeking specific rules to address potential ethical conflicts.
"The one remaining significant issue, I think, is the ethics provision," said House Financial Services Committee Chairman French Hill, R-Ark. "It basically exempts the President from any kind of ethical constraints. And that's just not going to fly in the Democratic caucus," added Schiff.
Senator Cynthia Lummis (R-Wy.), a supporter of the bill, expressed frustration with the ongoing debate, noting that revisions have significantly increased the bill's length. She warned that without a clear regulatory blueprint, cryptocurrency companies might move to countries with established frameworks.
"These companies can go to Singapore, Switzerland, the UAE and have a well understood clear set of regulations," Lummis said.
A procedural vote on the cryptocurrency bill is scheduled for Tuesday afternoon, requiring 60 votes to proceed. Many observers doubt its ability to overcome a potential filibuster.
College Sports Regulation
The Senate also anticipates a test vote on a bill to regulate college sports before the end of September, though a specific date has not been set. The legislation, a collaboration between Senator Ted Cruz (R-Texas) and Senator Maria Cantwell (D-Wash.), addresses issues arising from the transfer portal and name, image, and likeness (NIL) rules.
Concerns over athletes transferring multiple times and competing for extended periods have spurred legislative action. The proposed bill aims to limit athletes to one transfer and cap the amount of money schools can allocate for NIL deals. It would also prevent athletes from entering professional leagues and then returning to college.
"The transfer portal is out of control. You have athletes transferring two, three, four times. You have essentially no eligibility rules. So you have athletes competing six, seven, eight years. You have 28-year-olds competing against 17-year-old kids," said Cruz.
Vice President JD Vance commented on the shift in college athletics, noting a perceived loss of loyalty between athletes and fan bases.
Former Alabama football coach Nick Saban has been enlisted by the White House to advocate for the bill's passage.
However, the path forward for both bills remains uncertain. With the House of Representatives also facing a limited schedule before the midterm elections, there is a risk that neither piece of legislation will be enacted before the end of the current congressional session. Lawmakers acknowledge that if these bills are not addressed soon, potential legislative solutions may not resurface until the new Congress convenes in January.