CLARITY Act, Community Bank Legislation, and Ratepayer Protect

Summary

• Congress is working on a cryptocurrency bill, a community bank deregulatory bill, a reconciliation bill, and a stopgap funding bill for the fall.
• The CLARITY Act agreement on ethics language is an understanding among some Senate Republicans and President Trump, while Democrats have not seen the language and are doubtful to be on board.
• Passing the CLARITY Act in the Senate requires at least eight Democratic votes, which are currently considered insufficient despite some positive statements from senators like Gallego.
• Senate Majority Leader Thune may schedule a vote on the CLARITY Act soon, but this is viewed as political messaging rather than a guaranteed legislative path.
• If the CLARITY Act passes the Senate, it must be reconciled with the House version that passed months ago.
• The House is scheduled to vote on HR 6955, a banking deregulation bill that raises regulatory thresholds, exempts smaller bank mergers under $10 billion from antitrust review, and modifies the Consumer Financial Protection Bureau.
• HR 6955 differs from the banking provisions in the 21st Century ROAD to Housing bill and is expected to receive few Democratic votes.
• The House Energy and Commerce Committee is marking up HR 9340, the Ratepayer Protection Act, which aims to shift grid upgrade costs to large-load customers.
• HR 9340 has bipartisan support due to constituent pressure on energy prices, though its prospects for passing in 2026 are muddled due to the late legislative year.
• Data center energy costs and grid upgrades remain a persistent issue that will likely resurface in future legislation even if HR 9340 does not pass in 2026.