Merged CLARITY Act draft could surface next week

A merged draft of the Digital Asset Market Clarity (CLARITY) Act may be circulated the week of July 13, with floor action targeted for the week of July 20 ahead of the Senate’s August 7 recess. The combined text would add more than 70 pages and fuse versions produced by the Senate Banking and Agriculture Committees.

Sponsors say the unified draft places greater emphasis on consumer protections than earlier versions. Lawmakers have three full working weeks in July and the first week of August to act before the chamber adjourns for the summer, making the July 13–August 7 window the primary opportunity this year to set federal market-structure rules for digital assets.

The bill must secure 60 votes in the 100-member Senate to overcome a filibuster. Republican leaders, including Banking Committee Chair Tim Scott and Majority Leader John Thune, have coordinated a push for a July floor vote.

A key unresolved issue is an ethics restriction requested by some Democrats that would bar senior government officials, including the president, from retaining business ties with the crypto sector. Negotiators have not finalized language for that provision and are weighing alternatives, including allowing state attorneys general to pursue ethics violations. Two Democrats who supported advancing the Banking Committee’s version have warned they may withhold final approval unless the ethics question is resolved.

The White House has not approved the merged text and has not participated in recent negotiations. A White House letter noted that Democrats had not nominated minority candidates to the Securities and Exchange Commission and the Commodity Futures Trading Commission, a topic raised in talks about regulatory balance. Sources familiar with the discussions report that progress has slowed in recent weeks and that federal preemption of state rules remains unsettled.

Senator Cynthia Lummis, a principal sponsor, has described the legislation as “a consumer-friendly disclosure framework for digital assets. Not retrofitted from 1933. Built for 2026 and beyond.” Lummis has defended the bill against criticism on illicit finance by pointing to more than 16 safeguards included in the text. The measure has also received backing from the National Organization of Black Law Enforcement Executives.

If the Senate clears the bill, the House must approve the Senate’s version before it can reach the president’s desk. The House schedule has been affected by Republican infighting, which could delay consideration. Missing the August recess would likely push final action into 2027 and extend uncertainty for market participants seeking federal clarity on trading and disclosure standards.

The CLARITY Act aims to create federal rules for digital-asset markets and to clarify which regulators oversee different types of crypto activity. The additional pages in the merged draft reflect efforts to reconcile regulatory language, consumer protections and enforcement mechanisms developed by the two committees. Negotiators say significant work remains before a final bill can be brought to the Senate floor.