TLDR
- The CLARITY Act could go to a Senate floor vote as early as next week, before the August recess
- Ethics provisions around Trump’s crypto conflicts of interest remain the key sticking point
- Trump met with Republican senators Thursday to try to resolve the ethics issue and get his sign-off
- Senate Democrats say they won’t support the bill without strong ethics language in place
- Prediction markets give a 75% chance the bill gets a Senate floor vote before August
The US crypto market structure bill known as the CLARITY Act is close to a Senate floor vote, but a dispute over ethics rules is holding things up. The Blockchain Association CEO Summer Mersinger said lawmakers are “very close” on the main language of the bill, with a vote possible as early as next week.
BREAKING: The US House will hold a field hearing on the CLARITY Act tomorrow.
Titled "Building the Future of Finance: How the CLARITY Act Unlocks Innovation,"
The hearing follows the bill clearing the Senate Banking Committee 15-9 in May. It remains stalled over three… pic.twitter.com/pqQM7BxHB0
— Bull Theory (@BullTheoryio) July 16, 2026
The bill would regulate the crypto industry at the federal level for the first time. It passed the House a year ago but has been stuck in the Senate since then.
Mersinger, a former CFTC commissioner, said ethics is “the big elephant in the room.” She urged lawmakers not to let the ethics debate sink the rest of the bill, which her members have worked hard to advance.
President Trump met Thursday afternoon with Republican Senators Bernie Moreno and Cynthia Lummis, White House crypto adviser Patrick Witt, and Chief of Staff Susie Wiles. The goal was to reach a deal on ethics provisions and get Trump’s formal sign-off.
Why Ethics Is the Sticking Point
Trump disclosed in June that he earned $1.4 billion from digital asset ventures, including his memecoin and his family’s firm World Liberty Financial. That disclosure has fueled Democratic concerns about corruption.
Three Senate Democrats held a press conference Tuesday saying they would not back the bill without clear ethics rules covering how presidents, lawmakers, and other officials can profit from digital assets while in office.
Republicans hold a slim Senate majority and need several Democratic votes for the bill to pass. Senator Ruben Gallego said Thursday that the current bill text does not have Democratic support.
“At the end of the day, we don’t have strong ethics. I don’t care what the president says. You’re not going to have the Democratic votes,” Gallego told Politico.
Timeline and What Comes Next
The House goes on recess July 24. The Senate stays until August 7. Senate Majority Leader John Thune has said he wants the bill on the Senate floor before the August break.
Representative William Timmons said he is confident the bill will pass, though the timeline may stretch to the coming months. “We’re going to get it done,” he said.
Even if the Senate passes its version, the legislation would need to return to the House before becoming law. That step may not happen before lawmakers leave for recess.
Lawmakers have also pushed back on adding prediction market rules to the bill. Mersinger called any such amendment a “poison pill.” Representative Horsford agreed, saying that issue should be a separate bill.
As of publication, traders on Kalshi gave a 75.1% chance of CLARITY reaching a Senate floor vote before the August recess, up from 47% on July 10.
