CFTC chief says CLARITY Act nears passage

TLDR

CFTC Chair Brian Selig says the Digital Asset Market Clarity Act is close to passing, signaling real momentum but also a narrow, politically sensitive window for US crypto legislation.

1. Selig told the Milken Conference he is hopeful the CLARITY Act can pass by July 4 and that Congress is at the finish line on the compromise market-structure bill.
2. The bill would formalize CFTC authority over digital commodities, clarify the SEC/CFTC split, and constrain stablecoin yield, giving exchanges and institutions a clearer regulatory framework.
3. Passage is still not guaranteed, with major banks pushing back on the stablecoin compromise and midterm politics creating a short window for Senate action.

Deep Dive

1. What The CFTC Chief Actually Said

At the Milken Institute Global Conference, CFTC Chair Brian Selig said he is hopeful the Digital Asset Market Clarity Act can pass by July 4 and described Congress as at the finish line on the compromise bill, according to a detailed conference recap. That piece explains that the act, formally the Digital Asset Market Clarity Act of 2025, has already passed the House and is now moving through the Senate committee process, with a markup anticipated in the Senate Banking Committee soon.

Seligs comments sit alongside a broader SEC CFTC initiative, Project Crypto, which aims to harmonize oversight and has already produced guidance on digital asset taxonomy, reinforcing the sense that regulators are preparing to operate under the bills framework once it is law.

2. How The CLARITY Act Would Change Crypto Rules

The act is designed to settle the long running turf war between the SEC and CFTC by defining when a token falls under securities law and when it is a digital commodity regulated primarily by the CFTC. Under the bill, the CFTC would gain explicit authority over spot markets and intermediaries for such digital commodities, reducing todays patchwork of enforcement based guidance.

A key sticking point has been stablecoin yield. A recent bipartisan compromise from Senators Tillis and Alsobrooks would ban rewards that are economically or functionally equivalent to bank interest on idle stablecoin balances, while still allowing usage based rewards such as cashbacks or fee discounts. Industry players like Coinbase and Circle have swung behind the compromise, arguing it preserves innovation while giving institutions clearer lines on what they can offer.

3. Risks, Politics, And What To Watch

Despite Seligs ethereum/">optimism, the bill is not a lock. Major US banking groups, including the American Bankers Association and Bank Policy Institute, argue the stablecoin compromise still leaves loopholes that could encourage deposit flight from banks into high reward stablecoin wallets. Their opposition is now a visible fault line ahead of Senate Banking markup.

Political timing is another risk. Ripple CEO Brad Garlinghouse and other industry figures have warned that if the Senate does not act in the next few weeks, the bill could become too much of a loaded issue as the 2026 midterms ramp up, with some analysts suggesting odds of passage drop sharply if control of either chamber flips.

Conclusion

Seligs finish line comments reflect real progress on the CLARITY Act, especially after the stablecoin yield compromise, but they come against a backdrop of bank resistance and a tight political calendar. For crypto users and institutions, the bill is significant because it would finally define who regulates what, particularly around spot markets and stablecoins. The key watchpoints now are Senate Banking markup, any softening or hardening of the stablecoin provisions, and whether momentum holds long enough for a floor vote before election pressures take over.