Senator John Thune, the Senate Majority Leader, doesn’t expect the Digital Asset Market CLARITY Act to pass before the Senate breaks for August. This means discussions about the bill, which aims to regulate the crypto market, will probably continue after lawmakers return.
Journalist Brendan Pedersen reported that Senator Thune doesn’t believe the CLARITY Act will pass before the upcoming recess. He stated that while completing the legislation seems unlikely, he hopes to at least begin debate on it, depending on how many votes they can secure.
Senator Thune, the Senate Majority Leader, has indicated that the Clarity Act probably won’t be approved by the Senate before the August recess. When questioned about both the Clarity Act and Name, Image, and Likeness (NIL) legislation, he stated he doesn’t believe they’ll pass, but he hopes to at least begin debate on the Clarity Act, depending on how many votes they can secure.
— Brendan Pedersen (@BrendanPedersen) July 23, 2026
His remarks suggest that Senate leaders are still trying to determine if the bill has enough support from both parties to be considered for a vote.
Negotiations over ethics rules drag on
Progress on the CLARITY Act is stalled because lawmakers are still debating rules about elected officials investing in or working with cryptocurrency projects. Senate Republicans recently shared a revised version of the bill that includes stricter ethics guidelines, but keeps the main ideas for regulating the crypto market intact.
This plan would prevent the president, vice president, members of Congress, federal judges, and other key government officials—along with their spouses—from creating or promoting digital assets (like cryptocurrencies) for profit while they’re in office. It would also require some officials to sell their cryptocurrency investments or put them into independent trusts, report any crypto sales over $1,000, and give the Department of Justice the power to take action against anyone who breaks these rules.
Democrats disagree with giving the Department of Justice complete control over enforcement and are still advocating for stricter rules about ethics and potential conflicts of interest.
Democratic support remains uncertain
Seven Democratic senators, whose support is needed to pass legislation in the Senate, have stated that the newest version of the Republican proposal still doesn’t resolve some important issues.
Senators Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock released a statement saying the current proposal is inadequate. They highlighted concerns about ethics, protecting consumers, preventing illegal financial activity, avoiding conflicts of interest, and maintaining fair markets, stating these areas need improvement.
Despite the current challenges, lawmakers say they’re still willing to negotiate. They’ve collaborated with Republicans for the past year and plan to keep working together to pass the bill.
Their statement leaves the bill under negotiation rather than signaling outright opposition.
Wall Street backs the legislation
As negotiations go on, more groups outside the cryptocurrency world are now backing the CLARITY Act.
Goldman Sachs CEO David Solomon spoke in favor of the proposed legislation on Thursday, stating it would establish much-needed rules for digital assets, even while admitting the bill isn’t flawless. He believes the legislation will create fairer regulations, strengthen market stability, and allow digital asset markets to grow with a clearer set of federal guidelines.
What’s next for the CLARITY Act?
As I’ve reviewed the latest Senate draft, it largely maintains the original structure of the bill. Key elements remain, such as how regulatory oversight will be divided between the SEC and CFTC. Importantly, it still includes the Blockchain Regulatory Certainty Act, offering protections for developers who don’t hold customer funds, and establishes rules for stablecoins. Finally, the draft expands law enforcement’s ability to investigate and prosecute crimes involving cryptocurrency.
Senator Thune has suggested the bill probably won’t be voted on until after August, so discussions about the few remaining points of agreement will keep happening before the Senate considers whether to debate and vote on the CLARITY Act.
2026-07-23 23:52