Senate Republicans aim to advance the CLARITY Act after the July 4 recess despite unresolved negotiations. Ethics, banking provisions, and regulatory oversight remain key issues delaying a fi
Time is tightening for the CLARITY Act as Congress heads into its July 4 recess with several key issues unresolved. According to journalist Eleanor Terrett, Senate Republicans are pushing to advance the crypto market structure bill when lawmakers return on July 13, leaving roughly 20 working days before the August recess to move the legislation through the Senate and back to the House.
While lawmakers are away, negotiations will continue among congressional staff, administration officials, and industry participants. According to Terrett, several outstanding matters remain under discussion, with ethics emerging as one of the biggest hurdles.
That issue has gained attention because some Democratic support depends on an agreement addressing President Donald Trump's crypto businesses. Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland previously indicated that an ethics framework remains important to their continued backing.
As those talks continue, negotiators are expected to exchange proposals during the holiday recess. However, no final agreement has been announced publicly.
Beyond ethics, lawmakers still need to resolve provisions involving state preemption, affiliate trading, and exchange conflict management. At the same time, banking groups continue pressing senators over stablecoin yield provisions.
Although Senate Majority Leader John Thune recently cited stablecoin yield as an open matter, staff involved in negotiations said the issue has not reopened. Nevertheless, banking associations continue lobbying lawmakers over the current compromise.
Another area attracting opposition involves the Blockchain Regulatory Certainty Act. According to Terrett, law enforcement organizations and Catholic groups have raised concerns about its impact on investigations involving human trafficking and digital assets.
The legislative calendar now adds another challenge. Thune told Semaphore that the annual defense bill is expected to receive attention when senators return.
That schedule could leave the CLARITY Act competing for floor time later in July. Meanwhile, industry participants remain divided on the bill's prospects.
Miles Jennings, general counsel at Andreessen Horowitz, said time pressure can help produce agreements. Meanwhile, Solana Policy Institute President Kristin Smith said active negotiations and bipartisan support continue to provide a path forward.
However, Galaxy Digital research head Alex Thorn recently lowered his odds of passage this year from 60% to 50%, citing limited floor time and unresolved negotiations.
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