TLDR
- Senator Lummis is pushing the CLARITY Act forward, calling it the “foundation for 21st-century finance”
- The bill has passed the House and the Senate Banking Committee but still needs a full Senate floor vote
- August 7 is the key deadline — if the Senate leaves for recess without voting, the bill could slip to 2027
- Democrats are demanding ethics rules that would stop the president and officials from profiting off crypto
- Trump’s 2025 financial disclosure showed he earned roughly $1.4 billion from crypto, adding pressure to the ethics debate
Senator Cynthia Lummis is urging the Senate to move quickly on the CLARITY Act, a bill that would set clear rules for digital assets in the United States. She called it “this generation’s contribution” to financial history and said lawmakers need to “finish the job.”
🇺🇸 Senator Lummis says the CLARITY Act will "lay the foundation for the financial services of the 21st century." pic.twitter.com/7ywzQlZxxr
— CryptoGoos (@cryptogoos) July 5, 2026
The bill has already passed the House and cleared the Senate Banking Committee. What it still needs is a full Senate floor vote. That vote has not yet been scheduled.
The clock is ticking. August 7 is the last day the Senate is in session before summer recess. If no vote happens before that date, the bill’s path forward moves into 2027 at the earliest.
What the Bill Would Actually Do
The CLARITY Act would split crypto oversight between two federal regulators. The Securities and Exchange Commission would continue to oversee investment contract assets. The Commodity Futures Trading Commission would take a bigger role in digital commodity spot markets.
The bill would also require crypto exchanges and brokers to keep customer funds separate from company funds. That rule is a direct response to past exchange collapses.
It would set aside $150 million for crypto fraud investigations and bring some digital asset firms under Bank Secrecy Act reporting rules. Supporters say this replaces enforcement-led policy with a written rulebook. Critics say the text still lacks enough protections for users and decentralized finance.
Ethics Rules Are the Main Sticking Point
The biggest hurdle right now is not technical — it is political. Democrats want the bill to include ethics rules that would bar the president, vice president, senior officials, and members of Congress from profiting off the crypto industry.
That push got louder after President Trump filed his 2025 financial disclosure. It showed he earned roughly $1.4 billion from crypto last year. That includes royalty payments from his memecoin company, token sales from World Liberty Financial, and sales to an Abu Dhabi firm.
Senator Elizabeth Warren called for a strong ethics provision, saying the bill “must prevent the president” and others from profiting off crypto. Senator Ruben Gallego, who voted the bill out of committee, said he would work to “crack down on corrupt crypto dealings” and has not guaranteed his floor vote.
Negotiators still need to agree on the ethics language, and Trump would need to sign off on any deal.
What Comes Next
Behind the scenes, Senate staff from the Agriculture and Banking committees are still meeting to reconcile two different versions of the bill. Sources close to the process say they remain cautiously optimistic, but acknowledge that time is short.
Once the text is finalized, a Senate floor vote could move quickly — potentially just a few days to reach the 60-vote threshold needed to pass.
The bill’s fate may also depend on the House. Reports from Politico and Punchbowl News described the House as being in a state of dysfunction, which could complicate final passage even if the Senate acts.
August 7 remains the date to watch.
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