Senate Prepares New CLARITY Act Draft as Crypto Regulation Push Continues

A revised version of the Digital Asset Market Clarity Act is expected to be released this week, signaling that U.S. lawmakers are still working to advance landmark crypto market structure legislation despite speculation that the bill had stalled.

According to individuals familiar with the negotiations, the updated CLARITY Act will merge the separate versions previously approved by the Senate Banking and Agriculture Committees. The draft is also expected to add roughly 70 pages, reflecting efforts to reconcile differences between the two committees.

However, key issues remain unresolved. The latest draft is not expected to include an ethics provision or final agreements on several contentious sections, meaning the legislation is still not ready for a Senate vote.

The timeline is becoming increasingly important as Congress races to pass the bill before the 2026 midterm elections. Reports suggest Senate Majority Leader John Thune could bring the legislation to the floor later this month, potentially during the weeks of July 20 or July 27.

To clear the Senate, the CLARITY Act will likely need at least 60 votes, requiring bipartisan support. Industry groups such as Stand With Crypto are expected to lobby aggressively for passage, while crypto-focused political action committees could also play a major role in influencing lawmakers.

One of the biggest obstacles remains concerns surrounding President Donald Trump's crypto-related financial interests. Some Democratic lawmakers have indicated they may be unwilling to support the bill without an ethics provision addressing potential conflicts of interest. Sources also said White House engagement in negotiations has slowed in recent weeks, although discussions could resume once other policy disputes are settled.

Meanwhile, a separate victory for the crypto industry has reduced pressure on the CLARITY Act. A provision included in a recently approved housing bill temporarily bars the Federal Reserve from issuing a U.S. central bank digital currency (CBDC) through at least 2030. With the CBDC issue addressed separately, lawmakers may be able to focus negotiations on the remaining provisions of the CLARITY Act as Congress continues work on comprehensive cryptocurrency regulation.