The U.S. Senate is highly unlikely to consider the Clarity Act before lawmakers leave for the summer recess. Speaking on July 23, Senate Majority Leader John Thune said he hopes the chamber can at least begin debating the bill before the break. If that does not happen, work on the legislation will not resume until at least September.
Ethics Amendments Become a Sticking Point Again
Following talks with Senators Bernie Moreno and Cynthia Lummis, as well as White House adviser Patrick Witt, President Donald Trump approved a package of ethics provisions. The revised proposal would prohibit the president, vice president, members of Congress, and other federal officials from profiting from digital assets while in office.
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Despite the agreement, Democrats refused to support the revised proposal. Senator Ruben Gallego dismissed it as an unserious attempt to reach a compromise and argued that enforcement would effectively rest with the Department of Justice. Together with Senator Thom Tillis and other Republicans, he is now preparing an alternative version of the amendments.
Tillis said the text agreed upon with the White House could serve as a starting point, although it would need further revisions to gain support from some Democrats.
Market Urges Congress Not to Delay the Bill
Treasury Secretary Scott Bessent, Goldman Sachs CEO David Solomon, Galaxy Digital founder Mike Novogratz, Coinbase CEO Brian Armstrong, and other crypto industry leaders urged Congress to speed up passage of the Clarity Act, arguing that the lack of clear federal rules is weakening the United States' position in the global digital asset market.
“The Clarity Act is ready for consideration in the Senate. The United States needs a single federal regulatory framework. Without it, crypto companies will continue relocating to other jurisdictions, while consumers will remain without adequate protection. The bill will establish clear rules for the industry and help the country maintain its leadership in the digital asset market,” Brian Armstrong said.
Context
The House of Representatives passed the Clarity Act in July 2025. Since then, the Senate has postponed consideration of the bill several times because of disagreements over stablecoin regulation, rules for DeFi, and ethics restrictions for federal officials.
According to analysts, the Clarity Act would eliminate key regulatory uncertainties, including the division of authority between the SEC and the CFTC, licensing rules for market participants, the classification of digital assets, and requirements for protecting customer funds. The legislation could also encourage greater participation in the crypto market by banks, pension funds, and asset managers.
After lawmakers return from recess in September, Congress will have only a limited amount of time to continue work on the bill before shifting its focus to other legislative priorities and preparations for the midterm elections.