U.S. Treasury Secretary Scott Bessent has urged senators to vote immediately on the CLARITY Act, increasing pressure on lawmakers to test support for the crypto market structure bill before the August recess.
Summary
- Bessent demanded that the Senate vote “NOW” on the CLARITY Act.
- Disputes over ethics enforcement and the BRCA provision continue to block a bipartisan agreement.
- Polymarket traders place the bill’s chance of becoming law in 2026 at about 26%.
- A negotiated ethics package could determine whether Democrats support advancing the legislation.
Bessent demands an immediate CLARITY Act vote
Bessent called on Senate leaders to bring the CLARITY Act to a vote before lawmakers leave Washington next week. In a post on X, he accused Democrats of resisting the legislation because they fear opposition from Sen. Elizabeth Warren and what he described as her “anti-crypto army.”
The Treasury secretary said Senate Majority Leader John Thune would test that theory in the coming days by forcing lawmakers to state their positions. He framed the bill as a choice between supporting US leadership in digital assets and allowing other countries to move ahead with clearer regulations.
“Will Senate Democrats be on the side of American Exceptionalism, or will they opt to cede American leadership of a global industry for fear of the bespectacled squirrel’s Left flank?”
His intervention comes as the Senate faces a narrowing legislative calendar. Thune previously said the chamber might begin the floor process before the recess but acknowledged that there may not be enough time or votes to pass the legislation during the current session. As such, missing the pre-recess window could reduce the bill’s chances of becoming law in 2026.
Ethics and BRCA disputes threaten bipartisan support
Two provisions remain central to the negotiations: restrictions involving elected officials’ crypto interests and the Blockchain Regulatory Certainty Act, or BRCA.
Some Democrats have objected to language that gives the Department of Justice sole authority to enforce the ethics provisions. They want state attorneys general and other prosecutors to have enforcement powers rather than leaving oversight entirely to the federal government.
Republican Sen. Thom Tillis is expected to send a bipartisan ethics proposal to the White House. Approval from the Trump administration could remove one obstacle and help Senate leaders attract the Democratic votes needed to advance the bill.
Republicans hold 53 Senate seats but would likely need support from at least seven Democrats to clear the chamber’s 60-vote threshold. The House passed its version of the CLARITY Act in July 2025 by a 294–134 vote, including support from 78 Democrats.
Bessent defends protections for crypto developers
Bessent also rejected claims that the BRCA language would weaken authorities’ ability to pursue money laundering and other financial crimes. The provision seeks to clarify when developers of non-custodial blockchain software must register as money transmitters.
“The Blockchain Regulatory Certainty Act — which Washington lobbyists have spun up as a boogeyman for certain groups of prosecutors and law enforcement — does nothing other than codify longstanding Treasury Department policy that’s remained consistent across Administrations,” Bessent wrote.
He argued that developers who do not take custody of customer assets have not traditionally faced registration requirements under the Bank Secrecy Act. Prosecutors remain concerned that broadly written exemptions could limit their ability to bring cases against software providers connected to illicit transactions.
Law enforcement support has nevertheless increased after revisions to the bill. The National Fraternal Order of Police reversed its earlier opposition, saying its concerns had been addressed while investigators retained the tools needed to pursue crypto crime. The Major Cities Chiefs Association has also backed the revised legislation.
Prediction-market odds fall as the recess approaches
Traders remain skeptical that the CLARITY Act will become law this year. Polymarket priced the probability at about 30% on July 30, with roughly $3 million wagered on the outcome. The odds had reached 82% in February before falling as negotiations stalled and the Senate calendar tightened. Polymarket data also showed traders narrowly favoring an eventual Senate vote total above 50.
Bitcoin, meanwhile, traded near $64,767 after moving between $63,252 and $65,040 during the day. The muted response indicates that traders are not yet treating Bessent’s demand as evidence that passage is secured.
For US investors and crypto businesses, the stakes extend beyond the immediate vote. The legislation is intended to divide oversight responsibilities between the SEC and CFTC while setting federal requirements for digital-asset intermediaries. Failure to reach an agreement would leave companies operating under the existing mix of agency actions, court decisions and state rules.
The next test is whether the White House accepts the negotiated ethics package and whether Thune schedules a procedural vote before the recess. Without enough Democratic support, Bessent’s demand may force senators to record their positions without moving the bill closer to final passage.
