Trump-backed CLARITY Act to drop; needs 7 Democrats

Senate Republicans plan to release an updated CLARITY Act text on July 17 immediately after a White House meeting with President Donald Trump. No Senate Democrats have indicated support for the draft. The measure requires 60 votes to clear the Senate, meaning at least seven Democrats would need to join Republicans before the August recess begins on Aug. 8.

Sen. Bernie Moreno confirmed the timing to reporters, saying the text would be distributed “right after the meeting” and adding, “You guys have a lot of reading to do.” Democratic senators were not expected to attend the White House session, and several have publicly rejected the current language.

The central dispute concerns an ethics provision intended to address concerns about the former president’s business ties to the crypto industry. Democrats involved in the talks say the Republican ethics language allows too much discretion and lacks what they consider adequate consumer protections. Sen. Ruben Gallego described the GOP ethics language as “very weak,” and said the draft contains ethics provisions Democrats do not accept. Sen. Cory Booker said, “The only way to get this done is a bipartisan pathway.”

Republicans hold 53 Senate seats, so the bill needs the support of at least seven Democrats to reach 60 votes. Senate leaders targeted floor action for the week of July 20. The bill missed a July 4 deadline set by the president and faces the start of the August recess on Aug. 8 as the final window for action this month.

The Senate Banking Committee advanced the legislation on May 14 in a 15-9 vote, with senators Ruben Gallego and Angela Alsobrooks joining Republicans. That committee-level support has narrowed as debate over the ethics language continued. Industry groups, including Coinbase, have urged passage; Coinbase’s policy chief described the legislation as a significant advance in consumer protection.

If the Senate amends and passes its version, the House must agree on a final text before it can reach the president. The House Financial Services Committee’s Digital Assets Subcommittee held a field hearing on July 17, one year after the House first approved its version of the measure.

Prediction markets tracked the bill’s changing prospects. Polymarket’s estimate that the CLARITY Act becomes law in 2026 rose to about 45% on July 17 from 24% four days earlier. Republicans are working to finalize language and secure votes before the recess; Democrats continue to object to the ethics provisions. Lawmakers and industry advocates said they will review the released text to determine whether any revised language could attract the Democrats needed for passage.