Bessent Presses Senate to Pass Digital Asset CLARITY Act

The CLARITY Act would establish a federal market structure for digital assets, delineating oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission while strengthening consumer protections and anti-money-laundering safeguards. Supporters say regulatory certainty is critical to keeping crypto investment, jobs and innovation in the United States as jurisdictions worldwide compete to shape the industry’s rules.

Treasury Secretary Scott Bessent urged the Senate to vote on the legislation before its recess, warning that further delay could cost the US its leadership in digital assets. The House passed the measure on July 17, 2025, by 294 votes to 134. Bessent sharpened his appeal by invoking Bitcoin creator Satoshi Nakamoto, using the pseudonymous developer’s words to press Democratic senators to move quickly.

The Digital Asset Market Clarity Act would define how the Securities and Exchange Commission and Commodity Futures Trading Commission oversee crypto markets, giving the CFTC a central role in digital commodities while preserving SEC authority over some primary-market transactions. The House passed H.R. 3633 by 294-134 on July 17, 2025, but a revised Senate measure needs 60 votes to clear procedural hurdles. That makes Democratic support — and safeguards against conflicts involving elected officials’ crypto businesses — central to its prospects.

Senate Republicans released a merged draft on July 22 that would bar senior federal officials, including President Donald Trump, from issuing or sponsoring digital assets. The proposal gives Trump one year to divest or place businesses in a blind trust, relies on the Justice Department for enforcement and expires when the next president takes office. Democratic Senator Ruben Gallego on July 23 called it “not a serious effort” and said he would work with Republican Senator Thom Tillis on alternative language. The Senate’s August 8 recess is squeezing the timetable.

The CLARITY Act is designed to establish a federal regulatory framework for U.S. digital-asset markets, clarifying oversight responsibilities and compliance requirements for the crypto industry. Its progress is closely watched because passage could provide greater policy certainty for market participants and mark a significant step in Congress’s effort to define how digital assets are supervised in the United States.

Polymarket now puts the probability of the CLARITY Act passing by Dec. 31 at 32%, the lowest level this year and down from 37% cited in an earlier report. Democrats and Republicans remain divided over ethics provisions addressing government officials’ conflicts of interest involving digital assets. Senate Majority Leader John Thune has also acknowledged that the bill will not reach an August vote, leaving lawmakers with a narrowing window after the congressional recess.

The Digital Asset Market CLARITY Act aims to establish a federal regulatory framework for U.S. digital asset spot markets and clarify the respective authority of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The House passed the bill by 294–134 on July 17, 2025. It would shape compliance standards for trading platforms, token issuers and investors.

The U.S. Senate Committee on Banking, Housing, and Urban Affairs advanced the bill by 15–9 on May 14, 2026, ending about four months of negotiations. It must next go before the full Senate and secure at least 60 votes to clear the procedural threshold. The period before the August recess is a critical window. Bitget CEO Gracy Chen said the legislation would help move the crypto industry out of a regulatory gray area and toward mainstream compliance.

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.

The Digital Asset Market CLARITY Act seeks to divide regulatory jurisdiction between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while establishing registration and trading rules for cryptocurrencies, tokenized assets and decentralized exchanges. The legislation will determine whether firms can operate under a consistent U.S. compliance framework and could influence whether financial innovation moves offshore.

The U.S. House of Representatives passed H.R. 3633 on July 17, 2025, by a vote of 294–134, but Senate consideration has been delayed by disputes over rules governing stablecoin interest and rewards. Treasury Secretary Scott Bessent again urged Congress on April 10, 2026, to complete the legislation swiftly, noting that the global crypto market is worth $3 trillion and that nearly one in six Americans owns digital assets.

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.

Republican Senator Cynthia Lummis, a longtime cryptocurrency advocate known as the “Bitcoin Senator,” is pressing Congress to establish clearer rules for US digital-asset markets. The CLARITY Act is intended to define the regulatory roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, addressing uncertainty that crypto companies say has constrained investment, product development and compliance planning in the world’s largest capital market.

Lummis said the legislation had reached a “now or never” moment as the Senate prepared for a pivotal cloture vote. The final text incorporates more than 120 requests from Democrats, including new ethics provisions designed to address concerns over conflicts of interest. As of Sept. 16, 2026, the measure’s next test is the procedural vote to end debate, which requires at least 60 senators’ support before the bill can advance toward final consideration.