Senate Republicans are pushing hard to get the CLARITY Act across the finish line in July, but the window is tight. Lawmakers head back to their home states this week and won’t return until July 13 — giving them roughly four weeks to move the crypto market structure bill before another month-long break.
The bill, which would establish a regulatory framework for digital assets, has been grinding through Congress since the House passed it last July. It cleared the Senate Agriculture Committee in January and the Banking Committee in May, both along party lines. But getting it through the full chamber is another matter entirely.
Here’s the complication: President Trump recently canceled a signing ceremony for a separate housing bill that included a CBDC ban, saying he won’t sign anything until the SAVE America Act passes. That move has cast doubt on whether Trump would even sign CLARITY if it reached his desk. Congress could override a veto with a two-thirds majority, but that’s a tall order.
Senator Cynthia Lummis, one of the bill’s main backers, said negotiations have been ongoing since last Labor Day. They’re still hashing out DeFi provisions, illicit finance rules, and ethics requirements. The plan is to release final text around July 4th, give everyone one last look, then push for a vote.
Republicans hold a slim Senate majority and will need at least some Democratic support. Many Democrats have been pushing for stronger ethics provisions, which could become a sticking point. Galaxy Digital recently cut the odds of passage to 50%.
Bottom line: July is the make-or-break month. If the bill doesn’t move before the August recess, midterm campaigning could push it well into next year — or kill it entirely.
