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CLARITY Act Stalls in Senate With Four Weeks Left Before August Recess

Unresolved ethics questions about President Trump's crypto income, disputed DeFi developer protections, and contested rules on stablecoin yield threaten the bipartisan votes needed for cloture.

Overview

  • Senate negotiators said a merged Banking and Agriculture draft may be released this week and the House Digital Assets Subcommittee will hold a New York City field hearing on July 17 to gather industry testimony.
  • Democrats have renewed calls for hearings after President Trump’s 2025 disclosure showed roughly $1.4 billion in crypto‑linked income, and some senators say enforceable ethics guardrails are a condition of their support.
  • A central policy fight centers on Section 604, which would shield non‑custodial software developers from money‑transmitter rules and which law‑enforcement groups say could hinder investigations.
  • The Senate needs about 60 votes to clear a filibuster, the recent death of Senator Lindsey Graham narrowed the Republican margin, and negotiators face a roughly four‑week window before the August 7 recess to secure cloture.
  • Market odds for passage have fallen as uncertainty grows, sponsors and the White House press for a vote, and failure to act would likely push rulemaking and litigation to shape U.S. crypto policy into 2027 and keep firms cautious.