The Senate returns to Washington on July 13, with the clock ticking on the most significant cryptocurrency legislation in years. Lawmakers now have nearly four weeks to schedule, debate and pass the law The law of clarity Before the August holiday.
President Trump commented directly on Monday, posting on Truth Social that “in honor of Senator Lindsey Graham, a big supporter, the US Senate should pass the Clarity Act” and warning that China and other countries “desire complete and total control of this major financial ‘event’,” as well as artificial intelligence.
White House cryptocurrency adviser Patrick Witt stressed the importance of this issue, Pointing The critical week coincides with the one-year anniversary of the GENIUS Act and the warning that “we cannot afford to delay any longer.”
This is a window Many policy watchers Look at the last realistic opportunity to enact comprehensive digital asset market structure legislation in this Congress.
The Clarity Act would draw a strict regulatory line between the SEC and the CFTC, giving the commodities regulator exclusive jurisdiction over spot markets for “digital commodities” while leaving the SEC to oversee investment contract assets.
It passed the House in July 2025 by a bipartisan vote of 294-134. I stepped out The Senate Banking Committee in May by a 15-9 margin, with two Democrats joining all Republicans.
However, the committee votes came with warnings that floor support was not guaranteed.
The big event this week is the release of an updated text merging the Senate Banking and Agriculture Committee’s versions, the clearest indication yet of what survived the negotiations and what did not.
Clarity law issues remain
The bill was absent from the July 4 signing ceremony, which was targeted by White House cryptocurrency adviser Patrick Witt, and while meetings continued over the holiday, thorny issues remained unresolved, according to the site. Encryption in America. Getting 60 votes may be harder than getting that far, and with the Republican conference shrinking, Democratic buy-in is more important than ever.
The most important of which is the Blockchain Regulatory Certainty Law, Folded In the CLARITY Act as Section 604, which would protect developers of non-custodial software from being treated as money transmitters.
Law enforcement groups He argues The language, as written, would hinder investigations into network-related crimes, and Democratic support could hinge on the reviews.
Moral confrontation
The most explosive battle is over ethics. Negotiators have yet to reach a Clarity Act agreement with the White House on guardrails around conflicts of interest tied to President Trump’s cryptocurrency projects, after disclosures showed he took more than $1 billion from cryptocurrency-related companies last year.
House members They lobbied the Senate Act while addressing those concerns, and a An alliance of more than 200 companies He urged the leadership to put the draft law before Parliament. The coalition argued that the bill would establish a clear federal framework for digital assets and help sustain innovation in the United States
Complicating the calculations is that the death of Senator Lindsey Graham (R-SC) and the continued absence of Mitch McConnell (R-KY) leave Republicans almost no room for error in reaching 60 votes.
Feelings are divided. Christine Smith, president of the Solana Policy Institute, says momentum is building and pre-holiday voting is still possible, echoing… CFTC Leadership Call The bill is “very close.”
Others are cautious: Galaxy Digital has cut its odds of passing to 50-50citing a shrinking calendar and competing priorities such as the National Defense Authorization Act. The company said the legislation still faces procedural hurdles, unresolved ethics, disputes over developer protections, and a crowded Senate agenda that could delay consideration until September. Galaxy said the odds would improve if Senate leaders committed to holding the vote in July. The odds were as high as 70% earlier this year.
The next four weeks may be CLARITY’s last chance in the 119th Congress.
