Key facts
- An updated draft of the Digital Asset Market Clarity Act is expected this week, combining previous Senate committee versions.
- The bill's progress is contingent on resolving remaining contentious issues, including an ethics provision.
- Senate Majority Leader John Thune indicated a willingness to hold a floor vote in July.
- A provision banning the Federal Reserve from issuing a central bank digital currency for at least four years has taken effect.
- The House Financial Services Committee's digital assets subcommittee will hold a hearing on the Clarity Act this Friday.
Lawmakers are preparing to release a revised version of the Digital Asset Market Clarity Act, a significant piece of crypto market structure legislation, this week. The updated text aims to merge the distinct bills previously advanced by the Senate Banking and Agriculture committees, reflecting ongoing negotiations between these bodies. However, sources indicate that critical issues, including an ethics provision and other contentious points, remain unresolved, meaning the bill is not yet ready for a floor vote.
Despite these hurdles, there is speculation that the bill could be brought to the Senate floor for a vote as early as the weeks of July 20 or July 27. Achieving the necessary 60 votes for passage would likely require significant bipartisan support, potentially needing at least seven Democratic senators to cross the aisle, depending on Republican backing. Industry groups, such as Stand With Crypto, are expected to closely monitor and score the vote, leveraging the substantial funds raised by crypto political action committees.
The upcoming November 2026 midterm elections loom large, with lawmakers facing their constituents after the summer recess. The presence of an ethics provision is seen as crucial for securing Democratic support. Without it, or even a placeholder addressing it, the bill's chances of achieving broad bipartisan consensus could be diminished. President Donald Trump's stance, particularly regarding an ethics agreement, is also considered a key factor. While White House engagement has reportedly been less intense recently, some believe this is a waiting game until other outstanding issues are settled.
A potential positive development for the bill's proponents is the recent enactment of a provision within a housing bill that prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) for at least four years. This preempts concerns that a CBDC ban might be added to the Clarity Act, which could have further complicated negotiations and timelines. This CBDC issue is now addressed until at least 2030.
Upcoming events include Fed Chair Kevin Warsh testifying before the House Financial Services Committee and the Senate Banking Committee on Tuesday and Wednesday, respectively. Wednesday also features a nomination hearing for Jay Clayton as Director of National Intelligence. Thursday includes a Senate Banking Committee hearing on the Consumer Financial Protection Bureau, and Friday will see the House Financial Services Committee's digital assets subcommittee hold a hearing in New York specifically on the Clarity Act.