CLARITY Act Eyes Senate Action in July as Talks Drag On

Senate Republicans are seeking to move the CLARITY Act after the July 4 recess, even as several negotiating points remain unresolved. Ethics language, banking-related provisions, and questions around regulatory oversight continue to hold up a final deal, while the tight July calendar is increasing pressure to act before the August recess. Journalist Eleanor Terrett reported that Republicans want to push the crypto market structure measure when lawmakers return on July 13. That would leave about 20 working days before the August recess to advance the bill through the Senate and send it back to the House. During the holiday break, discussions are expected to continue among congressional staff, administration officials, and industry participants. Terrett said ethics has become one of the most significant sticking points, with some Democratic backing tied to provisions addressing President Donald Trump's crypto-related businesses. Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland have previously signaled that an ethics framework remains important to their support. Proposals are expected to be exchanged during the recess, though no public agreement has been announced. Negotiators are also still working through policy details involving state preemption, affiliate trading, and exchange conflict management. Banking groups are continuing to press senators on stablecoin yield provisions. While Senate Majority Leader John Thune recently cited stablecoin yield as an open issue, staff involved in the talks said it has not been reopened, even as banking associations keep lobbying around the current compromise. Separately, opposition has surfaced around the Blockchain Regulatory Certainty Act. Terrett said law enforcement organizations and Catholic groups have raised concerns that it could affect investigations involving human trafficking and digital assets. The Senate's July schedule is adding to the squeeze. Thune told Semaphore the annual defense bill is expected to take priority when senators return, potentially forcing the CLARITY Act to compete for floor time later in the month. Market participants remain split on the bill's odds. Andreessen Horowitz general counsel Miles Jennings said time pressure can help drive agreements. Solana Policy Institute President Kristin Smith said ongoing negotiations and bipartisan interest still leave a path forward. Galaxy Digital research head Alex Thorn recently cut his estimated chances of passage this year to 50% from 60%, pointing to limited floor time and unresolved talks.