The US Senate returns from recess today with 20 working days left before the August 7 break, and the crypto industry’s biggest legislative priority still has no floor date. Lawmakers plan to circulate an updated draft of the Digital Asset Market Clarity Act this week, according to multiple people familiar with the negotiations who spoke to CoinDesk. The new text merges the versions passed by the Senate Banking and Agriculture committees and adds roughly 70 pages. What it does not yet contain is an ethics provision, which is the single condition most likely to determine whether the bill clears the 60-vote threshold it needs.
The Clarity Act is the bill that would decide which US regulator, the SEC or the CFTC, oversees each category of digital asset, and under what rules exchanges, brokers and token issuers operate.
Key takeaways
- An updated Clarity Act draft combining the Senate Banking and Agriculture texts is expected this week, adding about 70 pages.
- The draft is not expected to include an ethics provision, which Democrats have made a condition of support.
- Senate Majority Leader John Thune has signaled willingness to hold a July floor vote. Rumored windows are the weeks of July 20 and July 27.
- Congress breaks for recess on August 7, and the midterm election on November 3 shrinks the window further.
Published: July 13, 2026, 09:00 UTC
Why the ethics fight is blocking the bill
Passing the Clarity Act in the Senate requires 60 votes, which means at least seven Democrats have to cross over, and more if any Republicans defect or miss the vote. The price of those Democratic votes has been consistent: a provision barring senior government officials from holding business interests in the crypto industry. Strong ethics language existed in earlier drafts and was stripped out to get the bill through the Banking Committee on a bipartisan vote in May.
That provision points directly at President Donald Trump, whose crypto holdings and ventures have been valued at roughly $1.4 billion. Without a signed-off ethics agreement, and the White House has been less engaged in recent weeks according to sources CoinDesk spoke with, Democratic support is unlikely to materialize. One person familiar with the talks said a draft that lacks even a placeholder for ethics language could be counterproductive to building bipartisan backing.
Two other disputes remain live. Section 604, which incorporates the Blockchain Regulatory Certainty Act and shields non-custodial software developers from money-transmitter registration and Bank Secrecy Act obligations, is still contested. So is stablecoin yield, where the Banking text prohibits interest paid solely for holding a payment stablecoin while carving out activity-based rewards.
What this means for the market
Crypto markets have already priced in delay. Bitcoin has been trading between $63,000 and $64,000 and digital assets just posted a third consecutive quarterly loss, the longest losing streak since 2022, with Bitcoin ETFs recording their largest quarterly outflow since launch. Regulatory certainty was supposed to be the 2026 catalyst. It has not arrived.
For exchanges, custodians and token issuers, the practical consequence is that the SEC and CFTC jurisdictional line stays where it is, drawn case by case rather than by statute. That leaves the SEC’s own rulemaking as the near-term path. The agency has set a July target for Regulation Crypto, a proposal that would create safe harbors for early-stage token fundraising and certain on-chain activity. That is an agency rule, not a law, and a future SEC can undo it.
The calendar problem
Twenty working days is not much runway for a 300-plus page bill with three unresolved fights. If the Senate passes a version, it still has to be reconciled with the House’s Clarity Act, which cleared that chamber last year. Then it needs the president’s signature. All of that has to happen before lawmakers turn to the November 3 midterms, where a crypto vote becomes a campaign liability or an asset depending on the district.
One obstacle did clear. A provision banning the Federal Reserve from issuing a central bank digital currency for at least four years took effect through the housing law over the weekend. Industry participants had worried House lawmakers would try to attach a CBDC ban to the Clarity Act, which would have added another negotiating front. That question is settled through 2030.
The House Financial Services Committee’s digital assets subcommittee holds a Clarity Act hearing in New York on Friday. Watch whether the merged text actually appears first, and whether it carries ethics language. That is the tell.
Frequently asked questions
What is the Clarity Act?
The Digital Asset Market Clarity Act is US legislation that would divide oversight of digital assets between the SEC and the CFTC, defining which tokens are securities and which are commodities. It also sets registration and disclosure rules for exchanges, brokers and token issuers operating in the United States.
When will the Senate vote on the Clarity Act?
No floor vote has been scheduled. Senate Majority Leader John Thune has said he is willing to bring it up in July, and sources point to the weeks of July 20 or July 27 as possible windows. Congress recesses on August 7, leaving 20 working days.
Why does the ethics provision matter so much?
The bill needs 60 votes, so at least seven Democrats must support it. Democrats have tied their votes to language barring senior officials, including the president, from holding crypto business interests. Without it, the bill likely stalls in the Senate.
