Bessent: CLARITY Act at ‘1-yard line’ before recess

On July 21, Treasury Secretary Scott Bessent described the CLARITY Act as at the ‘1-yard line’ and urged lawmakers to approve the digital-asset market bill before the Senate leaves for its August recess. Markets reacted: bitcoin rose about 2.5% to around $67,000 before settling near $66,000, and Coinbase Global shares climbed as much as 13%.

The bill cleared the Senate Banking Committee on a 15-9 vote and now faces the full Senate. To overcome a filibuster the measure needs 60 votes; Republicans hold 53 seats, so at least seven Democrats must back it. Senate Majority Leader John Thune is trying to bring the bill to the floor before the recess.

Senator Kevin Cramer described the legislation as ‘almost there,’ adding the Senate has ‘a couple more weeks’ to act. Negotiators say the remaining hold-up concerns ethics language added to secure Democratic support.

Officials reported the White House reached agreement on ethics terms and sent draft text to select Senate Republicans; several Democrats say they were not included in those discussions and have not seen the draft language.

Senator Kirsten Gillibrand, who chairs the Democratic Senatorial Campaign Committee, led negotiations on the ethics package and has faced criticism from progressive groups. Indivisible, Demand Progress and the Revolving Door Project sent a letter to Democratic Senate offices arguing her involvement undermines efforts to hold the administration accountable and pointing to her fundraising ties to the crypto industry.

Gillibrand defended her role and highlighted a provision she supports that would bar elected officials and their spouses from issuing or sponsoring their own digital assets. “Public officials and their spouses should not be issuing memecoins,” she added.

Backers of the CLARITY Act say the debate is mainly about process rather than whether ethics rules are needed; many Democrats support some restrictions but want the drafting to be transparent and bipartisan. With the recess approaching, negotiators face a tight timeline to secure the crossover votes needed.

If the Senate does not pass the bill before the recess, the measure would likely stall and require renewed effort afterward. Sponsors and industry groups say passage would set rules for exchanges, tokens and custody and clarify which federal agencies oversee digital assets.