Senate Resumes CLARITY Act Debate Amid Bank Pushback

The U.S. Senate returned from the Memorial Day recess to resume debate on the CLARITY Act, a bill that would reshape the federal approach to digital assets. Lawmakers must reconcile two committee versions of the market-structure measure — one advanced by the Agriculture Committee in January and another by the Banking Committee in May — after the House approved its version in July 2025.

Senate leaders say consolidation of the committee texts could produce a single bill for floor consideration in the coming weeks, and some congressional offices are eyeing a vote in August. White House officials had previously targeted the Independence Day period as a target for movement on the measure, but they now describe the timing as uncertain.

Banking executives have pushed back on the bill. JPMorgan CEO Jamie Dimon argued the banking industry would not accept the CLARITY Act as written, citing concerns that the measure would allow crypto firms to pay interest on user deposits and on stablecoin holdings. Representatives of major banks and trade groups also testified to senators at committee hearings, flagging potential risks tied to stablecoins, tokenized equities and other market-structure elements.

Figures from the crypto industry pressed for faster action. Coinbase chief policy officer Faryar Shirzad described the measure as the largest U.S. financial regulatory bill since Dodd-Frank, saying it would clarify how digital assets are regulated and bring more firms under federal oversight.

Ethics language has become a central issue in negotiations. Senator Kirsten Gillibrand warned there would be no votes for the bill without an explicit ethics provision. The Banking Committee did not consider proposed amendments addressing ethics and conflicts of interest before the break, and some Republican members said the full Senate, not committee, should resolve the issue.

Passing a consolidated bill on the Senate floor would require 60 votes, meaning Republican leaders would need support from some Democrats to advance the measure back to the House and to the president’s desk. Senator Elizabeth Warren cited President Donald Trump’s public ties to the crypto sector — including a memecoin and family-linked businesses — when urging stronger conflict-of-interest safeguards.

Market participants are watching the process. A prediction market has recorded more than $1.1 million in wagers on the bill’s chances, showing roughly a 55% probability of passage at the latest check.

Separately, regulators are moving on a related stablecoin law. The Treasury Department, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network and the Treasury’s Office of Foreign Assets Control will close the public comment period on the GENIUS Act this Tuesday. The stablecoin payments law was signed in July 2025 and includes a timetable that places some provisions into effect 18 months after enactment or 120 days after regulators finalize rules. At least one banking group asked agencies to extend the comment period, but regulators have kept the deadline in place.

Senators continue to negotiate bill text and vote counts as discussions on banking protections, market structure and an ethics framework proceed.