U.S. Senate Has Roughly Four Weeks to Settle the CLARITY Act Before August Recess

The U.S. Senate is back in session with about four weeks left before the August recess, putting a tight window on the CLARITY Act as supporters push for a floor vote ahead of lawmakers' departure from Washington. Journalist Eleanor Terrett reported that updated legislative text is expected this week, as negotiators work to close remaining gaps in the crypto market structure package. The new draft is set to consolidate versions advanced by the Senate Banking Committee and the Senate Agriculture Committee, giving industry participants a clearer view of which compromises made the cut and what still needs revision before a vote. White House Crypto Council Executive Director Patrick Witt called this a "critical week" for the bill, noting the crypto sector is approaching the one-year anniversary of the GENIUS Act becoming law. Witt said Congress has already devoted substantial time to the effort and urged lawmakers not to slow-walk the process. Key issues remain unresolved. One flashpoint is the Blockchain Regulatory Certainty Act, which would specify that noncustodial software developers should not be treated as money transmitters solely for publishing code. It remains uncertain whether senators will stick with the Banking Committee language or rewrite it after objections from law-enforcement groups. Negotiators are also still debating ethics provisions covering government officials' crypto interests. Crypto In America cited sources saying the White House and lawmakers have yet to reach agreement. Several Democrats, along with Sen. Thom Tillis, are pressing for stronger safeguards after President Donald Trump's financial disclosure listed more than $1 billion in crypto-related income last year. The bill's math has tightened on the Republican side as well. The recent death of Sen. Lindsey Graham and Sen. Mitch McConnell's continued absence have reduced the party's margin for error. Trump separately urged the Senate to pass the CLARITY Act in honor of Graham, while arguing the U.S. faces ongoing competition from China and other countries in financial technology and artificial intelligence. Industry expectations remain split. Solana Policy Institute President Kristin Smith told Crypto In America she believes talks are still moving toward a floor vote before the August recess. Galaxy Digital Head of Research Alex Thorn struck a more cautious note, recently cutting his estimated odds of passage to 50%, citing limited Senate floor time and attention shifting toward the National Defense Authorization Act.