CFTC says CLARITY Act nears US passage

TLDR

CFTC Chair Michael Selig says the CLARITY Act is close to US passage, but it still faces tight Senate deadlines and political disputes before becoming law.

1. The CLARITY Act has passed the House and key Senate committee, and CFTC leadership is publicly pressing Congress to approve it before the 7 August recess.
2. If enacted, it would put most crypto spot markets under CFTC oversight, clarify SEC boundaries, and add protections for non?custodial developers, potentially boosting institutional participation.
3. Odds of passage this year remain only around the mid?40 percent range, with ethics, AML and DeFi issues still contested, so Senate floor timing is the main catalyst to watch.

Deep Dive

1. Status And Timeline

CFTC Chair Michael Selig is telling media that Congress is so close to passing the Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, and urging a vote before the August recess, as reported by Fox Business and summarized in a recent community piece.

The bill already cleared the House in July 2025 with a 294 to 134 bipartisan vote and passed the Senate Banking Committee 15 to 9, but it still needs 60 votes on the Senate floor before reaching the presidents desk, according to CryptoSlates timeline.

Prediction markets tracked in several reports put the probability of CLARITY being signed into law in 2026 around 44 to 49 percent, reflecting rising ethereum/">optimism but not certainty after Seligs comments and ongoing Senate negotiations.

2. How CLARITY Would Reshape Crypto Rules

The CLARITY Act is a market structure bill that would define digital assets, split jurisdiction between the SEC and CFTC, and create federal registration rules for exchanges, brokers and dealers, rather than todays patchwork of state and agency actions, as outlined in multiple analyses of the bills text and scope such as this overview.

Under CLARITY, digital commodities like Bitcoin and likely Ether would fall primarily under CFTC oversight for spot markets, while the SEC would retain authority over tokens classified as securities. A key section, the Blockchain Regulatory Certainty Act (BRCA), seeks to create a safe harbor so non?custodial software developers are not treated as money transmitters simply for publishing code, as detailed in Senator Wydens letter covered by CCN.

3. Hurdles, Politics And What To Watch

Despite the CFTCs push, CLARITY is still facing political friction. Democrats are pressing for stronger ethics language around officials crypto holdings and tougher anti?money?laundering safeguards, while law enforcement groups warn BRCA protections could create oversight gaps for illicit finance, concerns highlighted in several Senate coverage pieces including this trade?focused write?up.

Supporters like Senators Cynthia Lummis and Ron Wyden argue that failing to pass CLARITY this session could delay comprehensive federal crypto legislation for years and risk pushing innovation offshore, while critics such as Senator Elizabeth Warren frame the current draft as too permissive for sanctions evasion and DeFi risks.

Over the next few weeks, the key signals to watch are whether Senate leadership actually schedules a floor vote before 7 August, how Section 604 (BRCA) is handled in final text, and whether any last?minute ethics or AML amendments are enough to unlock 60 votes.

Conclusion

The CFTCs message is that US crypto regulation is close to a decisive shift, with the CLARITY Act poised to replace fragmented state and enforcement?driven rules with a clearer federal framework. For crypto users and builders, the upside is more predictable oversight and potentially stronger institutional participation, but that outcome still depends on a narrow Senate window and compromise on ethics and AML provisions. Until a floor vote is set and the final text is visible, CLARITY remains a live catalyst rather than a settled regime.