John Kennedy

The Senate Banking Republicans have secured enough votes to advance the CLARITY Act, at least along party lines. This comes as Senator John Kennedy, who previously appeared not to support the bill, has said he will vote in favor tomorrow.

CLARITY Act Gains Enough Support Ahead of Tomorrow’s Markup

According to Semafor’s Burgess Everett, Senator John Kennedy said that he will vote for the crypto market structure bill tomorrow during the markup vote. This means the crypto bill can advance out of committee even if all Democrats vote against it.

Republicans currently have a majority on the Senate Banking Committee, which is why the CLARITY Act can advance as far as all Republican members vote in support of the bill. Senate Banking Committee Chair Tim Scott had already signaled he had secured all Republicans’ support for the bill, having previously indicated they would not hold the bill’s markup until that happened.

Meanwhile, Senator Kennedy said he would listen to the Democratic amendments to the bill, but he is already aware there won’t be an ethics provision in the bill before it advances out of the committee. He revealed that Senator Scott said he doesn’t believe they have the jurisdiction to include the provision in the bill.

Senate Banking Committee members have filed several amendments to the CLARITY Act text ahead of tomorrow’s markup. This includes over 40 amendments from anti-crypto Senator Elizabeth Warren, who is a ranking member on the committee.

Senator Warren proposes to block the Fed from issuing master accounts to crypto firms, including Ripple. The U.S. central bank already proposed the skinny master accounts, which it could soon issue to these crypto firms.

Why A Bipartisan Support Is Key

Galaxy’s Head of Research, Alex Thorn, has noted that bipartisan support for the CLARITY Act during tomorrow’s markup is key, as it would increase the bill’s chances of passage on the Senate floor. He further alluded to five Democrats who could vote for the crypto bill, stating that there is a high chance of its eventual passage if all five vote in support.

These Democrats include Senator Angela Alsobrooks, who was key to the negotiations between the banking and crypto industries over the stablecoin yield text. So far, Democrats have signaled they won’t support the CLARITY Act without an ethics provision in the crypto bill.

Republican senators Cynthia Lummis, Thom Tillis, and Bernie Moreno met yesterday with Democratic senators Adam Schiff and Kristen Gillibrand to resolve the dispute over the ethics provision. This meeting is also expected to continue today ahead of tomorrow’s markup.