The Senate returns to Washington on July 13, with the clock running down on the most consequential piece of crypto legislation in years. Lawmakers now have roughly four weeks to schedule, debate, and pass the CLARITY Act before the August recess.
President Trump weighed in directly on Monday, posting on Truth Social that “in honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act” and warning that China and other countries “would like to take complete and total control of this major financial ‘happening,’” as well as A.I.
White House crypto adviser Patrick Witt amplified the urgency, noting the critical week coincides with the one-year anniversary of the GENIUS Act and cautioning, “We cannot afford to delay any longer.”
This is a window many policy watchers see as the last realistic chance to enact comprehensive digital-asset market structure legislation this Congress.
The CLARITY Act would draw a firm regulatory line between the SEC and the CFTC, granting 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 294–134 vote and advanced 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 warnings that floor support was not guaranteed.
This week’s milestone is the release of updated text merging the Senate Banking and Agriculture Committee versions, the clearest signal yet of what survived negotiations and what remains unsettled.
Clarity Act issues remain
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 thorniest issues remain unresolved, according to Crypto in America. Getting to 60 votes may prove harder than getting this 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 shield non-custodial software developers from being treated as money transmitters.
Law enforcement groups argue the language, as written, would hamper investigations into on-chain crime, and Democratic support may hinge on revisions.
An ethics standoff
The more explosive fight is over ethics. Negotiators have yet to reach a CLARITY Act deal with the White House on guardrails around conflicts of interest tied to President Trump’s crypto ventures, after disclosures showed he earned more than $1 billion from crypto-related businesses last year.
House members have pressed the Senate to act while addressing those concerns, and a coalition of more than 200 companies has urged leadership to bring the bill to the floor. The coalition argued that 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 Senator Lindsey Graham (R-SC) and the continued absence of Mitch McConnell (R-KY) leave Republicans with almost no room for error in reaching 60 votes.
Sentiment is split. Solana Policy Institute President Kristin Smith says momentum is building and a floor vote before 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 disputes, and a crowded Senate agenda that could delay consideration until September. Galaxy said the odds would improve if Senate leaders commit to a July vote. Odds were as high as 70% earlier this year.
The next four weeks may be CLARITY’s last chance in the 119th Congress.
