Key facts
- Three cryptocurrency advocacy groups urged Senate leaders to prioritize the Digital Asset Market Clarity (CLARITY) Act.
- The CLARITY Act has advanced through Senate banking and agriculture committees but faces opposition over ethics provisions.
- Some Democrats argue the ethics measures are insufficient to prevent corruption.
- Industry leaders like Coinbase CEO Brian Armstrong believe the bill is crucial for establishing a federal framework and consumer protections.
- The bill's passage could be delayed until closer to the 2026 US midterms if not voted on before the August Senate recess.
The window for US lawmakers to pass comprehensive cryptocurrency legislation before the 2026 elections is narrowing, prompting industry organizations to call for action on the Digital Asset Market Clarity (CLARITY) Act. Three major crypto advocacy groups—the Crypto Council for Innovation, Digital Chamber, and Blockchain Association—sent a letter to Senate leaders on Friday urging them to prioritize floor consideration of the bill. Republican lawmakers are pushing for a vote before the Senate's August recess.
The CLARITY Act has progressed through the Senate banking and agriculture committees, but some lawmakers, particularly Democrats, have voiced concerns about its ethics provisions. Senator Ruben Gallego described the ethics measures as insufficient to prevent corruption, stating that the offered provisions were not a serious effort. These provisions aim to bar public officials from issuing or sponsoring cryptocurrencies.
Industry leaders have weighed in, with Coinbase CEO Brian Armstrong emphasizing the need for a federal framework to protect US customers and allow America to lead in the crypto industry. Orest Gavryliak, chief legal officer at DeFi platform 1inch, highlighted the bill's importance for establishing a framework for non-custodial protocols, arguing that current regulatory approaches often try to fit them into custodial frameworks inappropriately.
If the CLARITY Act is not voted on before the Senate breaks for its August recess, its consideration could be pushed into the weeks leading up to the 2026 US midterm elections, potentially complicating negotiations. As of Friday, event contracts indicated a 40.3% probability of the bill passing before the August recess.