Congress Hits Summer Recess, Clarity Bill Still Doing Its Homework 🏛️

The Clarity Act missed its symbolic July 4 deadline, and the calendar is becoming a serious obstacle for the bill's backers. White House adviser Patrick Witt said in May he hoped President Donald Trump would sign the legislation by Independence Day; that did not happen. Congress is now in its summer break, and with midterm elections looming, the window for a 2026 enactment is narrowing fast.

Three people tracking the process told CoinDesk late last week they remain optimistic the bill can still pass this year. Staff-level meetings are continuing during the recess, focused on reconciling the Senate Agriculture Committee and Senate Banking Committee versions of the bill. The Senate is expected to need only a few days in session to debate the measure and invoke cloture, which requires 60 votes to advance.

The House would then take up the reconciled text, though questions remain about timing on that side of the Capitol. Recent developments, including a Supreme Court case that effectively curtailed the independence of independent agencies and Trump's annual financial disclosure, are not expected to materially alter the underlying negotiations.

Trump's disclosure, filed last week and covering 2025, showed he earned $2 billion last year, with roughly $1.4 billion tied to the crypto industry. That figure includes royalty payments from his memecoin company, token sales from World Liberty Financial, and sales to an Abu Dhabi sheikh's firm, among other income streams. The disclosure arrives as lawmakers weigh crypto market structure legislation that would directly affect many of the same firms.

If the Clarity Act fails to clear Congress before the midterms, the path forward becomes uncertain. A flip in either chamber could lead Democrats to insist on reshaping the bill rather than taking it up as currently drafted, extending the timeline beyond this Congress.