White House Aims to Pass the CLARITY Act by July 4 as Senate Banking Committee Moves Toward Markup

The White House is pressing for passage of the Digital Asset Market Clarity Act (CLARITY Act) ahead of July 4, according to Patrick Witt, the administration's digital assets adviser. Witt said the Senate Banking Committee is expected to move the bill forward this month and that most major sticking points have been resolved. One of the toughest debates—how stablecoin yields should be treated—has landed on a compromise, Witt said, though neither the crypto industry nor banks are satisfied with the outcome. "I'm very bullish, cautiously optimistic," he said, referring to the bill's chances. Senate Banking Committee Chairman Tim Scott said the legislation is "in the red zone," and CFTC Chair Mike Selig said he hopes the bill can be signed by July 4. What the CLARITY Act would do The legislation would draw clearer lines between SEC and CFTC jurisdiction over digital assets, set rules for stablecoin yields, establish a regulatory framework for crypto exchanges and institutions, and shift U.S. oversight away from relying primarily on enforcement actions. Gillibrand lays out requirements Senator Kirsten Gillibrand, the lead Democratic negotiator on the bill, said Wednesday at the Consensus 2026 conference that she will not back the legislation without provisions banning crypto insider trading by lawmakers and government officials. Gillibrand, who authored the 2012 STOCK Act restricting congressional insider trading in equities, said three areas must be addressed before the Senate Banking Committee proceeds to markup: ethics rules, consumer protections, and safeguards against illicit finance and terrorism financing. "It can get done by August if we're lucky," she said. Democrats have raised concerns about potential conflicts of interest involving the Trump family. Bloomberg has estimated the family has earned at least $1.4 billion from the crypto industry. The White House said it is negotiating ethics rules that would apply broadly to all government officials rather than targeting specific individuals or families. Bitcoin reserve update Witt said updates on the proposed U.S. Strategic Bitcoin Reserve are expected in the coming weeks. The administration is auditing and centralizing crypto assets held by federal agencies following President Trump's executive order, with details on the reserve's structure expected later. Key date to watch The Senate Banking Committee's May markup is the most important near-term milestone. If the bill clears committee, a July 4 timeline remains within reach. If it bogs down, passage may slip to August at the earliest. Tags: Crypto news