Rep. Hill Urges Senate to Pass Crypto Clarity Act This Year

Key Highlights: 

• Rep. French Hill urged the Senate to pass the Clarity act this year.
• According to Hill, Clarity Act when paired with Genius Act, it provides a full framework for custody, trading and blockchain use.
• Hill also cautioned that delay in passing this act may push innovation and capital abroad. 

In a CNBC interview, Rep. French Hill talks about how important it is to pass the Clarity Bill by the year-end. According to him, if U.S. fails to pass the Clarity Act soon, then there is a possibility that U.S. may fall behind regions like Latin America and Europe as far as crypto growth is concerned.

The discussion which was led by CNBC host Joe Kernen, and he focused on Hill’s legislative push, the Senate’s political hurdles, how these dynamics will eventually affect the market competitiveness, and other concerns that include government funding debates and the Federal Reserve’s policy decisions.

House Passage of the Clarity Act

Rep. Hill pointed out that the U.S. House had passed the Clarity Act recently (July 2025) and it was passed with a solid bipartisan backing which had 78 Democrats backing the Act. He called the bill a key framework needed for the digital asset market to grow.

“When more than 290 members come together to vote for this, it tells you just how essential it is,” Hill emphasized. “This framework will make the U.S. the most competitive digital asset nation in the world.”

Hill also said that the Clarity Act works alongside the recently signed Genius Act, a Trump-backed stablecoin law that sets rules for dollar-backed payment coins. But he pointed out the gap with an analogy: “Passing the Genius Act without market structure is like allowing cell phones but not building towers. For the industry to succeed, we need both, clear rules on custody, trading, exchanges, and blockchain use in financial services.”

U.S. Risks Losing Ground Globally

CNBC’s Kernen pressed Hill on where the U.S. currently stands globally. Noting the relative speed at which jurisdiction in South America and Europe are moving, Kernen also suggested that U.S. still boasts deep liquidity and a strong IPO pipeline but lacks a solid framework.

Hill agreed and remarked saying “We can’t be fintech leaders without market structure. Countries abroad are moving toward clarity, and investors will follow jurisdictions with rules. That’s why we need Senate approval this fall.”

Legislative Uncertainty in the Senate

When asked why the Senate had not moved forward with the Clarity Act, Hill then explained that the talks are ongoing which are being led by Sen. Cynthia Lummis (R-WY) and Sen. Kirsten Gillibrand (D-NY), who have their own bipartisan plans. He hopes that the Senate would use the House bill as the starting point.

“They’ve held hearings, and discussions continue. I expect a markup in the coming weeks,” Hill said. “My goal is to see the Clarity Act clear the Senate before year-end.”

The host then talked about GOP leadership, and asked him why the majority could not act faster. Hill then admitted about the hurdles but also pointed out that there has been progress as well, saying, “It’s being worked on, and momentum is building. Both sides agree on the need.”

Broader Policy Context: Shutdown Risk and Fed Policy

The conversation then also shifted to the risk of a government shutdown in Washington. Hill said shutting down the government helps no one because it wastes money, slows things down, and hurts public trust. He praised leaders from both parties, Susan Collins in the Senate and Tom Cole in the House, for pushing budget bills forward and said that agreeing on an overall spending could stop another crisis.

The interview then closed with the topic of the Federal Reserve’s next interest rate move. Hill did not give a number but made sure that he explained the real issue: the Fed has to decide if rates are already high enough to slow the economy, and since the data is giving out mixed signals, it is a really tough decision.

Market Implications

From this interview it can be deduced that for crypto markets, Hill’s remarks highlight two main points. First, real progress is being made on clear rules for custody, exchanges, and trading. Second, while stablecoin rules are now law, without broader market structure the U.S. is risking losing innovation and capital to other countries.

Investors are now waiting to see if the Senate takes up the Clarity Act in October-November as Hill hopes. Passing it could make the U.S. a leader in digital assets, but delays may even keep the markets fragmented and firms cautious. Hill stressed that acting now would set the global standard.

Also Read: Sharps Technology Becomes Liquid Staking Partner of BONK