CLARITY enters a compressed final stretch in the Senate
The U.S. Senate returns to Washington on July 13, leaving lawmakers roughly four weeks to schedule, debate, and pass the CLARITY Act before the August recess. The bill is widely seen as the most consequential piece of crypto legislation in years.
President Donald Trump stepped in publicly on Monday, posting on Truth Social that, in honor of Senator Lindsey Graham, a major supporter, the U.S. Senate should pass the CLARITY Act. He also warned that China and other countries would like to take “complete and total control” of what he called this major financial happening, and of A.I.
White House crypto adviser Patrick Witt added to the sense of urgency, saying the key week coincides with the one-year anniversary of the GENIUS Act and warning, “We cannot afford to delay any longer.” For many policy watchers, this is the last realistic opening for Congress to pass a comprehensive digital-asset market structure bill in this session.
What the bill would do
The CLARITY Act would draw a firm regulatory line between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Under the proposal, the CFTC would get exclusive jurisdiction over spot markets for digital commodities, while the SEC would continue to oversee investment-contract assets.
The House passed the bill in July 2025 with bipartisan support, 294-134. In May, the Senate Banking Committee advanced it by a 15-9 vote, with two Democrats joining all Republicans. Even so, those committee votes came with a warning: floor support was not assured.
This week’s key milestone is the release of updated text combining versions from the Senate Banking and Agriculture committees. That draft offers the clearest view yet of what survived negotiations and what still has not been settled.
Developer protections remain contested
According to Crypto in America, the bill missed the July 4 signing ceremony that Patrick Witt had been targeting. Meetings continued through the recess, but the hardest issues remain unresolved.
The push to reach 60 votes may be tougher than the path that got the bill this far. With the Republican conference reduced, Democratic support matters more than before.
One major sticking point is the Blockchain Regulatory Certainty Act, included in the CLARITY Act as Section 604. The provision would shield non-custodial software developers from being treated as money transmitters.
Law enforcement groups argue that the language, as currently written, would make on-chain crime investigations harder. Democratic backing may depend on changes to that section.
Ethics fight adds another obstacle
The sharper dispute centers on ethics. Negotiators have not yet reached an agreement with the White House on guardrails related to conflicts of interest tied to Trump’s crypto ventures.
Disclosures showed that Trump earned more than $1 billion from crypto-related businesses last year. House members have pressed the Senate to keep moving on the legislation while addressing those concerns.
At the same time, a coalition of more than 200 companies has urged congressional leadership to bring the bill to the floor. The group said the legislation would create a clear federal framework for digital assets and help keep innovation in the U.S.
Vote math tightens as the clock runs down
The vote count has become harder. The death of Senator Lindsey Graham of South Carolina and the continued absence of Mitch McConnell of Kentucky leave Republicans with almost no margin for error in trying to reach 60 votes.
Views on the bill’s prospects are split. Kristin Smith, president of the Solana Policy Institute, said momentum is building and that a floor vote before recess is still achievable. That aligns with comments from CFTC leadership that the bill is very close.
Galaxy Digital is more cautious. The firm cut its odds of passage to 50-50, pointing to the shrinking calendar and competing priorities such as the National Defense Authorization Act. It said the legislation still faces procedural hurdles, unresolved ethics issues, developer-protection disputes, and a crowded Senate schedule that could push consideration into September.
Galaxy added that the odds would improve if Senate leaders commit to a July vote. Earlier this year, it had put the odds as high as 70%.
The next four weeks may be the CLARITY Act’s last chance in the 119th Congress.