Senate Crypto Bill Hits Four-Week Countdown Clock ⏰

The Digital Asset Market Clarity (CLARITY) Act faces a shrinking four-week window before the U.S. Senate's August state work period, with lawmakers scheduled to return from recess on July 13. Senate Banking Committee Chairman Tim Scott posted on X Monday that the chamber "should vote on crypto market structure legislation in July," a position Senate Majority Leader John Thune also supports, according to Punchbowl News. The bill passed the House 294–134 on July 17, 2025, and cleared the Senate Banking Committee 15–9 on May 14, 2026, along party lines.

The central fight has narrowed to Section 604 of the CLARITY Act, drawn from the Blockchain Regulatory Certainty Act, which would prevent software developers who do not exercise ultimate control over their tools from being classified as money transmitters under Bank Secrecy Act rules. The National Sheriffs Association told Senate Banking Committee leaders in a May letter that "no good reason supports giving mixers, tumblers, and DeFi a blanket exemption," adding that "while some software developers are not engaged in money transmitting or other activity that should subject them to BSA regulation, plenty of others are." The White House, led by crypto adviser Patrick Witt, invited law enforcement groups to a Monday meeting to address those objections after the sheriffs' association skipped a prior two-day White House session in June. The bill still requires 60 Senate votes, including at least seven Democrats, to pass.

Senator Cynthia Lummis of Wyoming said on Fox Business that lawmakers have negotiated "hardcore since last Labor Day" and plan to release text over the July 4th recess for final review. "We're still working a little bit on DeFi, we are working [on] illicit finance, we're working a little bit on ethics," Lummis said. "We're finally to the point where we're going to put out the text over the July 4th, and give people one last really thorough look at the bill, and then we're moving in July." Lummis publicly rejected criticism from Senator Elizabeth Warren, a Democrat, that the bill creates illicit finance loopholes, pointing to Section 201's application of Bank Secrecy Act and anti-money laundering rules to crypto, Section 303's sanctions on Iran, and Section 305's authority for exchanges to freeze illicit funds. "If you don't like crypto, then say it, but stop these baseless attacks," Lummis said.

The White House's path to a signature is also unclear. President Donald Trump on Wednesday cancelled a signing ceremony for the 21st Century ROAD to Housing Act, a bipartisan housing bill that included a ban on a central bank digital currency, saying he would not sign other bills until Congress passes the SAVE America Act requiring in-person proof of U.S. citizenship for voter registration. The U.S. Constitution allows Congress to override a presidential veto with a two-thirds majority in both chambers, or a bill becomes law automatically if the president takes no action within 10 days while Congress is in session.

Prediction markets have moved against the bill. On Polymarket, the odds of the CLARITY Act becoming law in 2026 fell to 39%, down from 64% in early June. Galaxy Research revised its estimate to 50% from 60% on June 5, citing the compressed Senate calendar.