On July 22, Senator Cynthia Lummis unveiled the full text of the CLARITY Act to the public. This final draft will help the bill move toward a potential full vote in the Senate.
in Official statementThe coming weeks “will likely be the last real chance we’ll have for years to get this right,” Loomis said. She cited the urgency, as the legislative calendar has a small window before the August recess.
the A 616-page bill It is expected to create clear federal rules for digital assets by dividing oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Key provisions in the updated draft of the CLARITY Act
the The law of clarity It is expected to provide much-needed regulatory clarity to the digital assets sector. Until now, the cryptocurrency sector has operated under regulatory uncertainty, raising concerns about consumer protection. The bill will strengthen consumer protection while controlling illegal financing. There are some important provisions mentioned in the text of this bill.
- Regulatory clarity for digital assets – The bill will establish clear rules to determine whether a digital asset is a security or a commodity. While the Securities and Exchange Commission (SEC) will regulate cryptocurrencies that fall under security categories, the Commodity Futures Trading Commission (CFTC) will handle commodities. The bill would allow projects to avoid the “regulation by enforcement” approach that has caused so much uncertainty. Mature blockchain networks and their tokens can be more clearly treated as commodities.
- Protection for developers – One of the biggest highlights is the strong developer protection. Those who only write and publish open source code without controlling user funds will generally not be treated as money senders. This requirement will provide very important protection for developers and save them from prosecution by programmers, such as Roman Storm, co-founder of Tornado Cash. It will also give them space to create innovations without living in fear of legal scrutiny.
- Guarantees for consumer protection and illicit financing – The bill comes with several anti-money laundering measures, sanctions tools and rules that require exchanges to freeze suspicious assets. It also includes disclosure requirements and frameworks covering stablecoins and DeFi activities.
Temporary ethical restrictions as the sun sets in 2029
A new ethics section has been added to the bill. It would prohibit senior government officials, including the president, vice president, members of Congress, federal judges and their spouses, from issuing or custodian of digital assets “for consideration.” However, they can still invest in digital assets.
The rules include a sunset clause, meaning they expire at noon on January 20, 2029, when the current presidential term ends. Senator Lummis said this reflects “the standard that President Trump chose to adhere to, and that Congress did not impose on him.” This provision came from White House negotiations and is expected to address concerns about conflicts of interest while building broader support.
The CLARITY Act aims to become a turning point in cryptocurrency regulation in the United States
The issuance of the draft law comes after months of negotiations. The House passed its version in July 2025 with strong bipartisan support (294-134), and the Senate Banking Committee advanced its version in May 2026 by a 15-9 vote with Democratic support.
Today’s updated text follows stakeholder briefings and addresses remaining issues, including ethics language pushed by Democrats and initially opposed by some Republicans. Although the draft resolution is led by Republicans, Loomis thanked his Democratic colleagues and expressed optimism about reaching a final agreement soon.
However, some Democrats have raised questions about ethics enforcement and called for further improvements, while critics of traditional finance continue to express concern about stablecoins and competition with banks.
If the United States passes this regulatory framework, the Clarity Act will be the most important cryptocurrency legislation in US history. It can reduce regulatory uncertainty for developers, exchanges and investors.
The bill needs 60 votes to pass, although its effective period is very narrow before the August recess. To achieve this threshold, Lummis and other team members reach out to other members to increase support.
For example, White House Cryptography Advisor Patrick Witt revealed He received a deferment from the Georgia Army National Guard in order to advance the Clarity Act.
“As a child raised by a single mother in South Carolina, I saw firsthand how access to opportunity can turn a family’s life around,” said Chairman Scott, who chairs the Banking Committee Division. “That is what the Clarity Act is about: protecting ordinary Americans and their hard-earned money, giving entrepreneurs a fair chance to build and create jobs here at home, and strengthening our national security by making it harder for criminals and foreign adversaries to exploit our financial system.”
