TLDR
The CLARITY Act is in its final drafting stage, with updated text expected around 4 July 2026 and Senate leaders targeting a floor vote later in July.
- Senator Cynthia Lummis says negotiators will publish the final text around 4 July, after months of talks, before pushing for a Senate vote in July.
- The bill would split crypto oversight between the SEC, CFTC, and banking regulators, but controversial DeFi and ethics provisions still threaten its path to 60 Senate votes.
- Tight calendar, politicking over Trump-linked crypto interests, and law enforcement AML concerns mean passage odds are slipping, so the next few weeks are critical for US crypto policy.
Deep Dive
1. Where The Bill Stands
The Digital Asset Market Clarity Act (CLARITY Act) passed the House in July 2025 and cleared the Senate Banking Committee on 14 May 2026 by a 159 bipartisan vote, putting it on the Senate legislative calendar and eligible for a floor vote.
Senator Cynthia Lummis has said updated bill text will be released around 4 July 2026 for one last public review before Senate leaders seek floor action later in July, marking the final review phase of negotiations.
The bill still needs 60 votes to overcome the filibuster. With Republicans holding roughly 53 seats, at least seven Democrats must support it, and some who backed it in committee have made their floor votes conditional.
2. What The Act Would Change
The CLARITY Act is a market-structure bill that would assign digital commodities like Bitcoin and, subject to a maturity test, Ether to CFTC oversight, investment-contract assets to the SEC, and payment stablecoins to banking regulators.
It also tackles stablecoin yield by allowing rewards programs but banning interest-like benefits directly tied to account balances, and it incorporates Section 604, the Blockchain Regulatory Certainty Act, which protects non-custodial developers and infrastructure providers from being treated as money transmitters solely for writing code or running software.
Industry groups argue these changes would finally give exchanges, stablecoin issuers, and institutions a clearer rulebook, reducing regulatory ambiguity that has discouraged some large traditional firms from deeper crypto exposure.
3. Remaining Risks And What To Watch
Section 604 has drawn sharp criticism from law enforcement and anti-trafficking advocates, who warn it could weaken Know Your Customer and antimoney laundering oversight for some DeFi and non-custodial services. The Department of Justice has pushed back, calling claims about enforcement loopholes factually inaccurate and saying the bill would not limit prosecutions.
Separately, ethics provisions tied to President Trumps and his familys sizable crypto interests have stalled a near-deal, with Democrats insisting on stronger guardrails and Republicans resisting language they see as singling out specific individuals. Prediction markets now put 2026 enactment odds near the low 40 percent range.
Key signals to watch are the exact final text released around 4 July, reactions from law enforcement and advocacy groups, and whether Senate leadership actually schedules a cloture vote before the August recess.
Regulatory clarity for US crypto could arrive in one concentrated package, but it still depends on resolving DeFi, AML, and ethics disputes in a very narrow calendar window.
Conclusion
The CLARITY Act is closer to the finish line than any prior US crypto market-structure bill, with final text nearly ready and a Senate vote tentatively targeted for July.
Whether it becomes law will hinge on how negotiators balance innovation against enforcement and ethics concerns in the coming weeks, which will shape the regulatory environment for exchanges, stablecoins, and major digital assets for years.
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