Senate leaders still intend to bring the CLARITY Act to the floor before the August recess, although unresolved negotiations and a crowded calendar leave the timing uncertain.
Summary
- Sen. Cynthia Lummis expects Senate action on the CLARITY Act before the August recess.
- Majority Leader John Thune has reportedly reserved floor time for the crypto market structure bill.
- Revised ethics language would let state authorities enforce restrictions on federal officials’ token activities.
- The Senate must navigate nominations, funding talks and sanctions legislation before leaving Washington.
Lummis says CLARITY Act remains on the agenda
Sen. Cynthia Lummis told crypto journalist Eleanor Terrett that Senate leadership is still seeking to take up the CLARITY Act before lawmakers leave Washington for their August recess.
Lawmakers have “one more week here in Washington,” according to Lummis. She said multiple nominations, discussions over a continuing resolution and votes related to Iran and Russia-Ukraine sanctions were competing for limited floor time.
Despite those demands, Lummis said Senate Majority Leader John Thune had continued to reserve space for the crypto bill.
“Senator Thune has kept a place for the Clarity Act on the agenda before the August recess for many, many weeks now,” Lummis said. “I believe he does intend to go through with it.”
The exact schedule has not been confirmed. Lummis said the Senate could proceed within days but could not say whether action would begin immediately or early next week. Her comments indicate that leadership still intends to test the bill on the floor, rather than guaranteeing a final passage vote.
Revised ethics proposal could unlock Democratic votes
The renewed timeline comes as Senate negotiators seek to resolve an ethics dispute that has prevented a broader bipartisan agreement.
Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego have reportedly submitted revised language to the White House. Their proposal would allow state authorities to enforce a ban on federal officials issuing or sponsoring digital tokens, instead of placing enforcement solely with the U.S. Attorney General.
Several Democrats had argued that exclusive Justice Department enforcement would provide insufficient independence because the department operates within the executive branch. The counterproposal could address that concern, but it still requires support from the White House and enough senators to advance the broader legislation. Earlier reports state that the Tillis-Gallego compromise would need approval from both sides.
The White House said on July 22 that it had accepted extensive federal ethics restrictions following talks with Republican Sens. Lummis and Bernie Moreno. Officials did not release the final text or explain the proposed enforcement process at the time.
CLARITY Act still faces a 60-vote Senate test
Republicans control 53 Senate seats, meaning the legislation would likely need at least seven Democratic votes to clear the chamber’s 60-vote procedural threshold.
The House passed its version of the CLARITY Act by a 294–134 vote in July 2025, with 78 Democrats supporting it. The proposal seeks to divide oversight of digital assets between the Securities and Exchange Commission and Commodity Futures Trading Commission while establishing rules for exchanges, brokers and token issuers.
Treasury Secretary Scott Bessent increased pressure on senators this week by calling for an immediate vote. He accused Democrats of delaying the legislation and argued that further inaction could weaken U.S. competitiveness in digital assets. Bessent wrote on X that the Senate needed to vote “NOW.”
What happens before the August recess
The immediate test is whether the White House accepts the revised ethics language and whether Thune formally schedules floor proceedings.
Other disputes, including provisions affecting blockchain developers and stablecoin rewards, could still complicate negotiations. Even if the Senate begins considering the bill, amendments and procedural votes may prevent final passage before the recess.
Failure to act within the remaining window would likely push the CLARITY Act into the Senate’s post-recess calendar, narrowing the time available to reconcile it with the House version. For U.S. crypto firms and investors, the outcome will determine whether a federal market structure framework advances this summer or remains unresolved for another legislative period.
