Senator Josh Hawley (R-MO) said Wednesday he will vote against advancing the Clarity Act unless lawmakers strengthen protections for community banks, making him the first Republican to publicly oppose the bill.

Why Hawley Is Voting No?

Hawley on Wednesday told Politico that farmers, ranchers, and community bankers in Missouri are flooding his office with concerns that stablecoin rewards programs could pull deposits away from local banks and cut off agricultural lending in small towns.

“I’m going to vote with my state on this,” Hawley said. “My state right now — agriculture folks, local community people — are very, very worried about the effect on community banks. They are blowing me up over it.”

Banking groups want the bill to include stronger restrictions on crypto rewards programs, arguing they function like interest on deposits and could trigger deposit flight from traditional checking and savings accounts. 

Meanwhile, crypto firms say the banks are trying to ban competition.

Where The Vote Count Stands Now?

The bill is already short of the 60 votes needed, and Hawley’s opposition leaves supporters with an even narrower path to passage.

Senator Rand Paul (R-KY) is expected to oppose the bill as well. Seven Democratic negotiators said the July 22 draft fell short on ethics, and talks over restricting senior officials from crypto dealings stalled. 

One flank opposes what the bill permits. The other opposes what it omits.

Senate Majority Leader John Thune (R-SD) moved Wednesday to advance a college sports bill rather than the CLARITY Act. 

Asked about crypto, Thune told reporters: “I still want to do that. We’re sequencing it.”

What Happens If The Senate Leaves Without A Vote

Wednesday night is effectively the last window for Thune to file cloture if the Senate leaves Friday as scheduled.

A cloture filing requires a full day to ripen before the first procedural vote, meaning Thursday is the last realistic day for action before recess.

Three possible outcomes remain, according to CoinDesk. Thune files cloture Wednesday night and pushes through a procedural vote before Friday. 

The Senate breaks without acting and takes up CLARITY in September, where only 14 working days remain before midterm campaigning consumes the floor. 

Or the Senate extends its session into next week, buying more time for a first vote but not full passage.

A legislative staffer told CoinDesk that lawmakers could still pass the bill in September if they resolve the remaining disputes over illicit finance, agriculture provisions, and ethics language.

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