Consensys: CLARITY Act could reshore crypto before midterms
Consensys senior counsel Bill Hughes told reporters the CLARITY Act would encourage crypto firms to locate operations in the U.S., but the Senate has weeks before its August recess.
Bill Hughes, senior counsel and director of global regulatory matters at Consensys, told reporters passage of the Digital Asset Market Clarity Act of 2025, known as CLARITY, would encourage crypto firms to build and operate in the United States. The Senate Banking Committee has scheduled a markup on the bill for Thursday.
Hughes noted the U.S. dollar was the largest fiat on-ramp to crypto, accounting for more than $2.4 trillion in volume between July 2024 and June 2025. He pointed to trading patterns showing most volume takes place on exchanges headquartered outside the United States: in December 2025 Binance accounted for about 38% of centralized exchange trading volume, while Coinbase was the only U.S. exchange in the top 10, with a roughly 6.1% share.
Supporters say CLARITY would set federal rules for market structure, custody and trading and clarify which tokens and services fall under the Securities and Exchange Commission or Commodity Futures Trading Commission. Exchanges, infrastructure firms and blockchain projects have backed the bill, arguing codified rules would encourage companies to locate staff and operations in the U.S.
Industry executives and bill backers have urged quick action because the Senate will break for its August recess and attention will shift to the midterm campaign calendar. Hughes warned, “The Senate has only weeks to move the bill before the August recess,” and added that if no progress is made the next realistic chance for comprehensive crypto market legislation may not arrive until 2030.
At the Consensus 2026 conference in Miami, Ripple Labs CEO Brad Garlinghouse cautioned that recent progress did not guarantee final approval and urged continued engagement with lawmakers.
A May poll of 2,028 registered voters found 52% supported passage of the CLARITY Act, with support reported across party lines.
Critics have questioned how the bill defines regulated activities and which tokens would qualify for exemptions, arguing some provisions could limit new projects or favor established firms. Lawmakers have debated amendments addressing market structure, custody standards and the role of state regulators.
Sponsors say a bipartisan markup could build momentum for floor action before senators depart for the August recess. They noted that once campaigning intensifies, congressional business on the measure would be more limited.
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