The U.S. Congress, which is advancing legislation on the regulatory framework for the crypto market, has now entered the Senate review phase. U.S. Representative French Hill stated that the Senate may already have the necessary number of votes to pass the CLARITY bill, and the main remaining obstacle is the conflict of interest provisions related to crypto businesses.

The House of Representatives version has been passed first.

Hill indicates that the House of Representatives passed its version of the CLARITY bill last summer, with the support of 78 Democratic members at that time. Since then, the Senate's Agriculture Committee and Banking Committee have been working continuously over the past year to bridge the differences between the two parties and try to narrow the gaps between the versions of the bill.

He also mentioned that the Genius Act related to stablecoins has entered the implementation phase. In his view, the next step for the Senate should be to advance the CLARITY legislation in order to establish a broader regulatory framework for the crypto market.

The dispute focuses on the conflict of interest clause.

According to Hill, the most prominent issue at present is how to handle ethical and conflict of interest issues related to the cryptocurrency industry. The relevant provisions mainly address how to prevent the overlap of regulatory and commercial interests when political figures or related parties are involved in cryptocurrency projects.

The stance of Hill is that once the bill is passed, regardless of who is behind the relevant companies, they will be brought under the regulatory framework of US commodities, securities, and banking, rather than remaining in overseas jurisdictions with weaker or less clearly defined regulations.

The Senate faces a backlog of agenda items

Hill also discussed the legislative agenda for the second half of the year in Congress. He stated that the House of Representatives has advanced 12 appropriation bills and has also dealt with matters such as the farm bill and the revision of Article 702 of FISA. Currently, there are still more than 600 bills passed by the House of Representatives awaiting processing in the Senate.

In his view, senators should use the last three weeks of September to address the backlog of agenda items. The CLARITY bill, the National Defense Authorization Act, and the 2027 fiscal year appropriations are all on the to-do list.

If the Senate indeed proceeds with a vote, the CLARITY bill will become the next key topic in the process of US crypto legislation. Whether the bill can overcome conflicts of interest will also affect how the United States regulates crypto asset trading, issuance, and platform operations.