CLARITY Act Hits Time Crunch as July 4 Target Nears

The U.S. Crypto Market Structure Act, known as the CLARITY Act, is entering a pivotal stretch as lawmakers race to advance it before the July 4 congressional recess, CoinDesk reported. The White House said negotiations are continuing and moving forward day by day, but the window to complete the necessary steps in Congress is narrowing. Patrick Witt, the White House Executive Director for Digital Assets, told journalist Eleanor Terrett he remains optimistic about the timetable, citing active behind-the-scenes work to close remaining gaps. A Senate vote is still not locked in. Several obstacles remain. The report said ethical concerns are unresolved, some provisions still need rewriting, and the Senate has yet to line up the 60 votes required for passage. To make headway before lawmakers leave Washington, both chambers would need to speed up. Once Congress breaks for recess, legislative momentum typically fades as members return to their districts. Views in Washington remain divided on timing even as the White House projects confidence. Senate Banking Committee Chair Tim Scott recently said the bill will pass before the August recess, stating, "This will happen." Galaxy Digital founder Mike Novogratz said he has met with 14 senators involved in the talks—eight Democrats and six Republicans—and that only three major issues remain, including the ethics dispute. Senator Cynthia Lummis warned that missing the current window could push meaningful crypto legislation back for years. Prediction markets reflect the uncertainty. Galaxy Digital puts the odds of passage by 2026 at 60%, while Polymarket prices the probability at about 51%. In the weeks ahead, the bill's trajectory will hinge on whether negotiators can settle the remaining disputes and secure enough Senate support to move it across the finish line.