Multiple sources familiar with the Clarity Act negotiations told CoinDesk that lawmakers intend to unveil an updated version of the crypto market structure bill this week. The new text combines work from the Senate Banking and Agriculture Committees and includes some 70 additional pages, with greater emphasis on consumer protections than either committee's standalone version. However, the updated bill text will not include an ethics provision or agreements on some of the remaining contentious issues, meaning it's not yet ready for a vote. Senate Majority Leader John Thune told Punchbowl News last month he was willing to put the bill up for a floor vote in July, with rumors suggesting the bill may go to the Senate floor during the week of July 20 or July 27. If a vote is announced, there will likely be a full-court press to try and make sure it has at least 60 votes in the Senate, meaning at least seven Democrats will need to be willing to support the bill.
A heated debate has emerged between Coinbase and Senator Elizabeth Warren over the CLARITY Act's national security implications, with Coinbase policy chief Faryar Shirzad rejecting Warren's claims that the bill would weaken U.S. national security. In a July 11 post on X, Shirzad argued that unclear crypto rules give bad actors room to operate outside firm regulatory boundaries, stating that the bill would move more digital asset activity into a federal compliance system rather than leave it under fragmented oversight. Shirzad emphasized that the proposal would place crypto brokers, dealers, and exchanges under Bank Secrecy Act duties, including anti-money laundering programs, customer checks, suspicious activity reports, and sanctions compliance. He also pointed to provisions that let platforms pause suspicious transfers when law enforcement requests action, calling it "a strict security mandate." However, Warren has taken the opposite position, sharing an article by former National Security Council Iran director Richard Nephew and writing, "As currently drafted, the Clarity Act is a ticket to sanctions evasion." Nephew argued that the bill could leave some decentralized finance participants outside clear Bank Secrecy Act duties and make enforcement harder, with the dispute centering on which crypto businesses must register, monitor transactions, and answer to federal agencies.
Senate Democrats have renewed calls for hearings into President Trump's cryptocurrency business interests after his latest financial disclosure reported about $1.4 billion in crypto-related income. A notice released on July 10 by the Democratic ranking members of five U.S. Senate committees and subcommittees called for congressional hearings to examine what they described as the national security implications of Trump's cryptocurrency holdings. The president's 2025 financial disclosure, which reported roughly $1.4 billion in earnings linked to ventures including his memecoin and the Trump family-backed World Liberty Financial platform, has intensified concerns over Congress advancing digital asset legislation while Trump maintains significant financial interests in the sector. "We call on our respective Committees to hold hearings to investigate the national security implications of President Trump's cryptocurrency holdings, including the influence of the UAE or unknown third parties on President Trump's actions," the senators wrote in the notice. Among the signatories were Senators Elizabeth Warren, Richard Blumenthal, Gary Peters, Dick Durbin, and Ron Wyden, who have previously argued that Trump's crypto businesses create potential conflicts as Congress debates legislation affecting the industry.
President Donald Trump has refused to sign a bipartisan housing bill until the Senate passes his election overhaul, creating a standoff that tightens the CLARITY Act's already narrow window before recess. Trump canceled the planned signing ceremony for the 21st Century ROAD to Housing Act, which cleared both chambers by veto-proof, bipartisan margins in June. As reported by Truth Social, Trump wrote, 'I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT.' The CLARITY Act is now awaiting a new deadline of the 7th of August to advance, as Trump has stated he will 'not sign other bills' until Republicans in Congress have passed the SAVE America Act. The housing measure is set to become law without his signature once the 10-day window closes, but the real cost lands on the Senate calendar.
The Senate Banking Committee's CLARITY Act fact sheet reveals significant new anti-money laundering measures, including federal anti-money laundering and counterterrorism finance rules applied to centralized digital asset intermediaries. The bill creates a Treasury power known as Special Measure 6, allowing officials to target foreign jurisdictions, institutions, or transaction types tied to major digital asset money laundering risks. The proposal would increase FinCEN funding, require risk controls at digital asset firms, and create a government-industry information-sharing program. It also regulates crypto kiosks and requires studies on mixers, illicit finance, cyber risks, and national security threats. Senator Cynthia Lummis, the Wyoming Republican who has championed the bill, has described it as "a consumer-friendly disclosure framework for digital assets." She has also pointed to more than 16 anti-illicit-finance safeguards in the text as a direct answer to criticism from Senator Elizabeth Warren. Rep. French Hill is advocating for a clear deadline to vote on the CLARITY Act before Congress starts its August recess, believing that 'I've encouraged Senate leadership to put it on the floor. I think if you schedule a floor date here in the month of July, that will cause these final meetings, these final discussions to take place. You've got to have a deadline in Congress to get people to move and find consensus.' Michael S. Selig, the 16th Chairman of CFTC, has also expressed support, stating that 'The Clarity Act, talking to this future proof notion of making sure that crypto is here to stay.' Joseph Lubin, Ethereum's co-founder, has echoed similar sentiments, adding to the growing industry support. The National Organization of Black Law Enforcement Executives (NOBLE) backed the bill earlier this month, adding to the coalition of groups aligned with Senate Banking Chair Tim Scott and Majority Leader John Thune.
A merged Senate Clarity ACT bill could be released as early as next week, with a floor vote targeted for the week of July 20, but the legislation still lacks the Democratic support needed to clear the 60-vote threshold required to break a filibuster. Even if a vote is announced, it's unlikely that sufficient Democrats will vote for the bill in the Senate if there isn't an ethics provision included. Several sources told CoinDesk that the White House had not been as engaged recently as it had earlier in the summer, but another individual told CoinDesk in early July that it may just be a matter of waiting to see whether all the other outstanding issues are resolved first. The central sticking point remains an ethics provision Senate Democrats are demanding: a restriction barring senior government officials, including the president, from maintaining business ties with the crypto sector. Warren has urged Senate negotiators to add ethics provisions that would bar the president, vice president, members of Congress, senior administration officials and their immediate families from profiting from cryptocurrency ventures while in office, describing Trump's crypto businesses as a conflict of interest that Congress should address through the legislation. Republicans hold the Senate majority, leaving Democrats unable to convene hearings without Republican support, though Senate rules require 60 votes to overcome a filibuster, giving Democratic lawmakers leverage as Republicans seek enough bipartisan backing to advance the CLARITY Act. Galaxy Research has cut its odds of 2026 passage to 50%, down from 60% earlier in the month and 75% right after the committee markup, citing calendar compression more than substance. The 2026 midterm election is coming up quite soon — Nov. 3, so less than four months from now — and lawmakers will have to face their own base and flanks after they break for the summer recess and go into the final campaign swing.
