The Clarity Act just missed its window. Senate Majority Leader Thune has confirmed there will not be a vote before recess. Instead, it will be queued up first thing when the Senate returns in September. But the House already passed this by a wide margin last year — 294 to 134 — and it is the Senate that remains split, still needing about seven Democrats to cross the aisle. So what does this mean and what is next? Joining me to unpack this is Christian Narvaez, Founder and Managing Partner of Rayo Capital and President of the New York chapter of Stand With Crypto. Chris, thanks for joining us again.
Good morning Johnny. Thank you for having me.
Senate Majority Leader Thune says this will be queued up first thing when the Senate returns in September. Is that a real commitment or just a line he gave reporters before recess?
I think it is obviously a procedural step that needs to be done. A decision was not made before the recess, but that does not stop anything. Innovation will continue — companies are still moving forward with products and services in digital assets because of what we already have in place from the GENIUS Act. But it is definitely not something I would say is ideal for the industry right now.
Walk us through the split. Why does it matter so much whether the CFTC or the SEC oversees digital assets like Bitcoin and Ethereum?
In general, it is healthy for the industry to know who regulates what. With the SEC regulating securities and the CFTC regulating digital commodities, it just helps in allocating resources and building compliance accordingly. The industry has not had that clarity. For now the industry will continue to innovate under regulatory guidance — but that guidance is not durable. Having federal law in place brings more confidence over the long term.
Republicans hold 53 seats. They need 60. What will it realistically take to get seven Democrats on board by September?
Continuing to hammer out and reach conclusions on the major talking points — the language on stablecoin yields, AML provisions, and the ethics language. As long as progress continues to be made on those, I am optimistic that a conclusion may come.
Over 200 crypto firms including Coinbase pushed for swift Senate action. Now there is no movement until the fall. What happens to the industry and New York specifically?
I would give the example of the Telecommunications Act of 1996, which was originally struck down in 1994. From 1994 to 1996, innovation and capital did not stop flowing into the ecosystem — it continued under regulatory guidance. Once the legislation passed in 1996, durability within the regulatory environment came. Companies like Amazon were created during that period. I would say that is a good case study — innovation and capital will continue to flow.
The EU already has MiCA in place. How much competitive ground does the US lose every month this stays unresolved?
For those moving forward with regulatory clarity in their local jurisdictions, that is obviously a positive for them from a regional perspective. But in the US we want to continue to stay competitive. Regulatory guidance is good and important — but it is not durable. Having long-term regulatory durability at the federal level is key to staying competitive and allowing the US to stay at the forefront of innovation.
What will Stand With Crypto do during the Senate recess to build momentum for September?
Business as usual. As a nonprofit representing the voice of founders, users, and developers, we will continue showcasing the startups being built across the country — the actual use cases solving real-world problems. And in New York specifically, we will continue engaging our local community. We welcome conversations with local policymakers. Come in and see that there are actual builders, actual developers, with actual use cases solving real problems.
Christian, thank you so much for joining us today.
Thank you Johnny. Happy to always be here.
