TLDR
- A new Senate CLARITY Act draft could be released as soon as next week.
- The draft may merge Senate Banking and Agriculture committee work.
- The bill still needs enough Democratic support to reach 60 Senate votes.
- Ethics rules for senior officials remain a major unresolved issue.
- SEC and CFTC vacancies are adding pressure before Senate crypto talks resume.
A new Senate draft of the CLARITY Act could be released as soon as next week, but the crypto market structure bill still faces disputes over ethics rules, developer protections, federal preemption and vacant SEC and CFTC seats.
Senate Draft May Merge Banking and Agriculture Work
The updated CLARITY Act text is expected to combine work from the Senate Banking and Agriculture committees, CoinDesk reported. The merged version may include more than 70 pages of new material and a stronger focus on consumer protections.
The bill seeks to create a federal framework for digital asset markets and divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed its version in 2025, but the Senate draft has not yet secured enough support.
Senate backers are aiming for possible floor action as soon as the week of July 20. The timing is tight because lawmakers return from recess on July 14 and have only a few weeks before the summer break.
The bill needs 60 votes to advance, meaning Republicans must win support from several Democrats. Even two Democrats who backed the Banking Committee version have warned that they may not support a final bill unless their concerns are addressed.
Ethics Rules and Agency Vacancies Slow Talks
The biggest unresolved issue is an ethics provision sought by Democrats. The measure would restrict senior government officials, including the president, from keeping business ties with the crypto sector.
Some lawmakers have said they will not support a final bill without a compromise on those limits. One idea discussed in negotiations would allow state attorneys general to sue over ethics violations, but talks have slowed.
The White House also pushed back on claims that it has refused to nominate Democratic commissioners to independent agencies. In a letter to Senate leaders, the White House said it had asked Democrats for recommendations for vacant SEC and CFTC seats but had “not received names in response.”
Democratic senators previously said the White House appeared set on leaving many agency posts open. Bloomberg has reported that staffing at financial regulators remains part of broader policy disputes as crypto legislation moves through Congress.
Developer Protections Remain Central to DeFi Debate
The DeFi sector is watching the Blockchain Regulatory Certainty Act, a section of CLARITY that would protect developers from being treated as money transmitters if they do not control customer assets. Senator Ron Wyden supported keeping that language in a letter to Senate leadership.
Supporters say the provision protects non-custodial software development. Critics, including some law enforcement groups, have warned that broad exemptions could weaken investigations and anti-money laundering tools.
Other unresolved questions include federal preemption, which determines how much state authority remains after a national crypto framework takes effect. Stablecoin rewards and the treatment of consumer-facing crypto products also remain under negotiation.
Senator Cynthia Lummis, like US President Donald Trump, has warned that failing to pass CLARITY could leave the United States “catching up” to other countries on crypto rules.
