Galaxy Digital CEO Mike Novogratz (@novogratz) says the Digital Asset Market Clarity Act is within reach, but warns that two or three unresolved issues still stand between the bill and a Sena
Galaxy Digital CEO Mike Novogratz (@novogratz) says the Digital Asset Market Clarity Act is within reach, but warns that two or three unresolved issues still stand between the bill and a Senate floor vote.
The most contentious dispute centers on how open-source developers and blockchain validators should be treated under the law. The CLARITY Act's developer protections would exempt open-source developers, validators, and non-custodial wallet providers from being classified as brokers or financial intermediaries.Without those protections, developers who simply publish software code could face the same regulatory burdens as banks or exchanges, which critics say would chill blockchain innovation in the US.
On June 9, more than 60 crypto CEOs and founders, including representatives from Coinbase, a16z, Uniswap, Solana Labs, and Kraken, urged the Senate to pass the bill with Section 604, the Blockchain Regulatory Certainty Act (BRCA), intact to shield non-controlling developers from Bank Secrecy Act and money-transmission liability.
The second sticking point is law enforcement. The crypto industry's demands have run into strong resistance from US law enforcement agencies, as officials fear that removing developers from oversight would make it harder to fight money laundering.Data from prediction markets suggest that the backing of several Democratic senators remains frozen pending a consensus with law enforcement agencies.
The third is time. Novogratz described this four-week period as the last window of opportunity before the summer recess.According to the current trend of the election year, the race toward the polls could deepen the political divide in both chambers, preventing subsequent bipartisan agreements.
The bill passed the House of Representatives in July 2025 on a bipartisan 294-134 vote, a commanding margin that reflected broad legislative appetite for a federal framework governing digital asset classification.The Senate Banking Committee cleared the legislation on May 14, 2026, by a 15-9 vote, with Democrats Ruben Gallego of Arizona and Angela Alsobrooks of Maryland crossing the aisle to join Republicans, and the bill was placed on the Senate Legislative Calendar on June 1, 2026.
The bill still faces a demanding path to enactment. The Senate Banking Committee version must be merged with the Senate Agriculture Committee's jurisdiction framework before a full Senate floor vote, where the bill requires 60 votes to clear the filibuster threshold.Galaxy Research estimates the bill has a 60 to 75 percent chance of becoming law in 2026 and projects a possible presidential signature during the week of August 3, though Senator Cynthia Lummis cautioned after the committee vote: "Nobody is popping the champagne quite yet."
Despite the hurdles, Novogratz remains optimistic that a compromise can be reached, calling June the decisive month for the legislation.
Sources:CryptoRank: Crypto Industry Heavyweights Urge Senate to Pass Clarity Act With Developer Protections IntactBitcoin Magazine: Crypto Industry Heavyweights Urge Senate to Pass Clarity Act With Developer Protections IntactCrypto Economy: Mike Novogratz Reveals the 3 Biggest Roadblocks Delaying the CLARITY Act
