The U.S. Senate could vote on the CLARITY Act later this month, but revised legislative text has not emerged as lawmakers return from the July 4 recess. According to Crypto In America, negotiations remain unfinished around ethics provisions and the Blockchain Regulatory Certainty Act (BRCA). Senator Cynthia Lummis had earlier expected stakeholders to receive updated compromise language during the break.
Ethics Language Remains the Core Hurdle
Industry participants say ethics language is the central issue blocking the bill. Resolving it could ease talks on other disputed sections. Earlier discussions collapsed after Senate Republicans and White House officials withdrew support for a proposal allowing state attorneys general to sue the DOJ over enforcement failures tied to conflicts of interest. Lummis later suggested letting state AGs sue exchanges listing tokens issued by government officials. Democrats have not publicly indicated support for that alternative.
BRCA and Law Enforcement Divide
The BRCA remains one of the most watched sections. Trump administration officials and law enforcement organizations have continued discussions. The National Organization of Black Law Enforcement Executives endorsed the legislation, while the Major County Sheriffs of America shifted from opposing to neutral. However, the National Sheriffs’ Association, National Association of Police Organizations, and Fraternal Order of Police have not announced support. Senators Catherine Cortez Masto and Mark Warner say law enforcement concerns must be adequately addressed before they back the bill.
Wyden Pushes to Keep BRCA Language
Senator Ron Wyden urged Senate leaders to preserve the BRCA language approved by the Senate Banking Committee. Wyden and Lummis introduced the standalone measure in January. Wyden said the provision confirms that non-custodial software developers should not qualify as money transmitters solely for publishing software, while the DOJ and FinCEN retain authority to pursue illegal activity. Wyden's stance on the broader CLARITY Act remains uncertain after he opposed both the GENIUS Act and the resolution overturning the IRS DeFi broker rule. Senator Thom Tillis also insists ethics language must stay in the legislation for his support.