Senate Leaders Push for July Passage of CLARITY Act

The path of the Digital Asset Market Clarity (CLARITY) Act, a bill intended to establish comprehensive guidelines for cryptocurrency regulation, remains uncertain with the US Congress set to break for another state work period in a matter of weeks.

Since passage in the US House of Representatives in July 2025, the CLARITY Act has faced several hurdles advancing in Congress, from industry pushback on stablecoin rewards to lawmakers’ concerns about ethics. The bill passed the Senate Agriculture Committee in January and the Senate Banking Committee in May along party lines, setting it up for consideration in the full chamber.

However, US President Donald Trump on Wednesday cancelled the signing ceremony for the 21st Century ROAD to Housing Act, a housing bill that received bipartisan support in both chambers and contained a ban on a central bank digital currency (CBDC). Trump said that he would not sign the bill until Republicans in Congress passed the SAVE America Act, legislation requiring voters to provide proof of US citizenship in person to register, adding in March that he would “not sign other bills” until it was passed.

The move by the president leaves the future of the CLARITY Act in doubt despite earlier statements signaling he supported the bill. If Trump vetoes the legislation, Congress could override him with a two-thirds majority vote in both chambers. According to the US Constitution, if a president doesn’t sign or veto a bill within 10 days while Congress is in session, the bill automatically becomes law.

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On Monday, Republican leaders in the Senate, including banking committee chair Tim Scott and majority leader John Thune, said that they were pushing for the chamber to pass CLARITY in July. Lawmakers are scheduled to be out of Washington, DC and on state work periods until July 13, giving them four weeks to address the bill before a monthlong state work period in August.

Source: Senator Tim Scott

“We’ve been negotiating on the CLARITY Act hardcore since last Labor Day, and it’s been an arduous process,” said Senator Cynthia Lummis, one of the bill’s proponents, in a Fox Business interview last week, adding:

“We’re still working a little bit on DeFi, we’re working [on] illicit finance, we’re working a little bit on ethics [..] We’re finally to the point where we’re going to put out the text over the July 4th, and give people one last really thorough look at the bill, and then we’re moving in July.” 

What happens if lawmakers face more delays on CLARITY?

Republicans hold a slim majority in the US Senate, where they will need some support from Democrats should they hold a vote on CLARITY next month. Many Democratic lawmakers have been pushing for ethics provisions in the bill, citing the Trump family’s ties to the crypto industry through the president’s memecoin and his sons’ involvement in the World Liberty Financial platform and a Bitcoin mining company.

Should Republicans not meet the 60-vote threshold in the Senate before August, many experts expect that lawmakers dealing with reelection campaigns could delay the passage of CLARITY, potentially pushing the legislation to the next session of Congress in 2027.

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