The Senate returns to Washington on July 13, where the clock is ticking down on the most consequential crypto legislation in years. Lawmakers now have about four weeks to plan, debate and pass the CLARITY Act before the August recess.
President Trump weighed in directly on Monday, writing on Truth Social that “in honor of Senator Lindsey Graham, a big supporter, the US Senate should pass the Clarity Act” and warned that China and other countries “want to take complete and total control of this great financial ‘happening'” as well as AI
White House crypto adviser Patrick Witt reinforced the urgency, noting that the critical week coincides with the one-year anniversary of the GENIUS Act and warning, “We cannot afford to delay any longer.”
This is a window that many policy watchers see as the last realistic chance to pass comprehensive legislation on market structures for digital assets this Congress.
The CLARITY Act would draw a firm 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 cleared the House in July 2025 by a bipartisan vote of 294-134 and moved out of the Senate Banking Committee in May by a 15-9 margin, with two Democrats joining all Republicans.
Those committee votes, however, came with caveats that the floor’s support was not guaranteed.
This week’s milestone is the release of an updated text merging the Senate Banking and Agriculture Committee versions, the clearest signal yet of what survived negotiations and what remains unresolved.
There are still problems with the Clarity Act
The bill missed the July 4 signing ceremony that White House crypto adviser Patrick Witt had targeted, and while meetings ran through the recess, the toughest issues remain unresolved, according to Crypto in America. Getting 60 votes could prove more difficult than getting that far, and with the Republican conference shrinking, Democratic buy-in matters more than ever.
Chief among them is the Blockchain Regulatory Certainty Act, folded into the CLARITY Act as Section 604, which would protect non-custodial software developers from being treated as money transmitters.
Law enforcement groups argue that the language, as written, would hamper investigations of criminality in the chain, and Democratic support could depend on audits.
An ethical standpoint
The more explosive battle is about ethics. Traders have yet to reach a CLARITY Act deal with the White House on safeguards surrounding conflicts of interest linked to President Trump’s crypto ventures, after disclosures showed he earned more than $1 billion from crypto-related businesses last year.
Members of the House have pushed the Senate to act while addressing those concerns, and a coalition of more than 200 businesses has urged leadership to bring the bill to the floor. The coalition argued the bill would establish a clear federal framework for digital assets and help keep innovation in the U.S.
Complicating the math, the death of Sen. Lindsey Graham (R-SC) and the continued absence of Mitch McConnell (R-KY) leave Republicans almost no room for error in reaching 60 votes.
The feeling is split. Solana Policy Institute President Kristin Smith says momentum is building and a floor vote before the recess remains achievable, echoing CFTC leadership calling the bill “so close.”
Others are wary: Galaxy Digital cut its passage odds to 50-50, citing the shrinking calendar and competing priorities like the NDAA. The firm said the legislation still faces procedural hurdles, unresolved ethics and developer-protection conflicts and a crowded Senate agenda that could delay consideration until September. Galaxy said the odds would improve if Senate leaders commit to a vote in July. Odds were as high as 70% earlier this year.
The next four weeks may be CLARITY’s last chance in the 119th Congress.