White House Officials Push to Pass CLARITY Act by July 4

The CLARITY Act is intended to establish a US market structure for digital assets and clarify how oversight is divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Its fate matters to token classification, trading-platform supervision and compliance obligations across the crypto industry. Supporters view legislation as a more durable way to end years of uncertainty over which agency governs different parts of the market.

With the bill’s prospects of passage fading, the SEC and CFTC are moving to develop crypto rules under their existing authorities. Industry experts caution that agency regulations would offer less lasting certainty than an act of Congress because a future administration or reconstituted commission could reverse them, while courts could also narrow or invalidate the measures. The emerging CLARITY-free approach may provide near-term guidance but leave companies exposed to another shift in US policy.

The Digital Asset Market Clarity Act would establish the first comprehensive U.S. federal framework for crypto markets, defining when tokens fall under securities or commodities rules and clarifying oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission. The measure has stalled in the Senate amid disputes over stablecoin rewards, illicit-finance safeguards and ethics restrictions tied to President Donald Trump’s growing crypto interests, leaving the industry without a uniform market structure regime.

Trump met crypto and traditional-finance executives at the White House on Aug. 19 and urged Congress to pass a “fair version” of the CLARITY Act. Attendees at the broader event included Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, Nasdaq CEO Adena Friedman and ICE CEO Jeffrey Sprecher. The Senate has scheduled an initial procedural vote for Sept. 15, requiring 60 votes. A person familiar with the Oval Office discussion said Trump was bullish on passage, while his administration is seeking a path to move the bill as soon as September.

The CLARITY Act seeks to create the first comprehensive US market structure for digital assets, defining when tokens should be treated as securities or commodities and dividing oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission. Its significance extends beyond jurisdictional lines: negotiations over stablecoins and decentralized finance could determine whether Congress can deliver durable rules for an industry still operating under fragmented enforcement and guidance.

The Senate majority leader has moved to initiate a procedural vote, positioning the bill for a possible full-chamber vote as early as mid-September. The White House has pledged to push CLARITY across the “finish line” in September, but resistance is mounting. Senator Ruben Gallego has urged colleagues not to rush the measure, Galaxy cut its estimated odds of passage to 10%, and the CFTC and SEC are exploring joint regulatory steps should Congress fail to act.

The Digital Asset Market Clarity Act of 2025, or H.R. 3633, is intended to divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, giving the derivatives regulator a broader role in spot crypto markets. The House passed the bill 294-134 on July 17, 2025, but Senate talks have bogged down over ethics restrictions, stablecoin rewards and protections for decentralized finance. Legislation would provide a more durable framework than agency rules, which could face court challenges or reversal by future administrations.

CFTC Chairman Michael S. Selig said on Aug. 20, 2026, that he had directed staff to explore crypto market-structure rules and would order formal proposals if Congress failed to advance CLARITY. The framework could address registered exchanges, leveraged or margined trading on some unregistered platforms, and legal pathways for on-chain financial protocols. Selig said legislation remained the surest route, but the agency would use its existing statutory authority if necessary, as the Senate targets a procedural vote in mid-September after returning from its August recess.

The Digital Asset Market Clarity Act would establish the first comprehensive US federal framework for issuing and trading crypto assets, while clarifying regulators’ jurisdiction. Supporters say legislation is needed to make the Trump administration’s recent policy shift durable beyond the current presidency. Senate negotiations, however, remain complicated by proposed ethics restrictions on senior government officials’ ties to digital-asset businesses.

President Donald Trump met executives from Coinbase, Gemini, Ripple, Chainlink Labs and other technology and financial companies at the White House on August 19, urging Congress to approve a “fair version” of the CLARITY Act. The bill needs 60 votes to clear the Senate during a narrow September window and would then return to the House for approval. Another recess would carry Congress toward the November 3 midterm elections, sharply reducing the chances of passage in 2026.

The US Congress is considering the CLARITY Act, which seeks to clarify regulatory responsibilities for digital assets and trading platforms and reduce legal uncertainty for crypto companies. Senator Cynthia Lummis says clear rules are critical to bringing businesses back to the United States and preserving the country’s leadership in financial technology.

Lummis warned that this week could be the United States’ last critical opportunity to advance the CLARITY Act before 2030. She said China could otherwise write the rules for a new financial era. Negotiations have continued since the Senate returned, but Democrats and Republicans remain divided over provisions covering lawmakers’ ethics and safeguards against bad actors. A vote on crypto market structure could take place as early as August.

US crypto assets have long been overseen separately by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with no clear line determining whether a token is a security or a commodity. The Digital Asset Market Clarity Act aims to delineate the agencies’ responsibilities, reduce regulatory uncertainty for the industry and cement US leadership in setting global rules for crypto finance.

US Treasury Secretary Scott Bessent recently urged Congress in an opinion piece to pass the bill this summer. The House approved it by a 294–134 vote on July 17, 2025, but it still awaits Senate action. The White House had pushed to complete the legislation by July 4, while prediction markets currently put its chance of passage this year at about 70%. Bessent also said the Strategic Bitcoin Reserve is moving forward cautiously.

The CLARITY Act aims to define the SEC’s and CFTC’s jurisdiction over digital assets and establish rules for trading platforms. The House passed the bill on July 17, 2025, but the Senate has yet to complete the legislative process. Finalizing the rules will determine whether banks can offer custody, tokenized deposits and onchain settlement under consistent standards.

The Senate Banking Committee advanced the bill on May 14, 2026. Before that, the SEC and CFTC had announced five token classifications on March 17, while the OCC confirmed that banks may provide compliant custody and onchain payment services. BNY estimates the digital cash market will reach $3.6 trillion by 2030, while JPMorgan’s Kinexys processes more than $5 billion a day.

The Clarity Act is a key U.S. congressional effort to provide greater regulatory certainty for crypto assets. It aims to establish a federal regulatory framework for payment stablecoins and clarify rules governing issuance, reserve assets and regulatory jurisdiction. Because stablecoins are widely used in trading and payments, the bill’s trajectory will affect compliance costs and market strategies across the industry.

The U.S. House of Representatives recently held a markup session on the Clarity Act, reviewing and debating the bill provision by provision. Despite disputes among lawmakers over some clauses, the measure advanced to the next stages of the legislative process. Existing reports did not disclose the exact date of the meeting, the vote tally or any amounts involved. The timing of a full House vote and Senate consideration remains to be seen.

The CLARITY Act seeks to establish a US crypto-asset market structure framework and clarify the division of regulatory authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission. If the bill reaches the full Senate, it would typically need at least 60 votes to advance, making bipartisan cooperation critical to its prospects of becoming federal law. Current polling shows that most voters support clear cryptocurrency rules.

Coinbase Vice President of Policy Kara Calvert said at Consensus 2026 that the Senate Banking Committee could take up the bill as early as the following week. The committee subsequently scheduled a markup for May 14 and voted to advance the CLARITY Act. The bill must still clear a full Senate vote, while lawmakers' dispute over crypto-asset ethics rules for government officials could affect the final timetable and bipartisan support.