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Senate Nears Test Vote on CLARITY Act as Ethics and Stablecoin Disputes Persist

Unresolved ethics and stablecoin fights threaten a Senate vote on a bill designed to assign SEC versus CFTC authority by protecting customer crypto before the August recess.

Overview

  • Negotiators have merged Senate Banking and Agriculture texts and industry figures say a floor vote could come the week of July 20, but no official Senate vote is yet scheduled.
  • Two central disputes — enforceable ethics language tied to President Trump’s crypto earnings and how stablecoin yields are treated — remain unresolved and are blocking enough Democratic crossover votes for cloture.
  • The CLARITY Act would draw clear jurisdictional lines by giving the SEC authority over securities‑like tokens and the CFTC authority over commodity‑style tokens, and it includes a provision to treat customer crypto as property in bankruptcy.
  • Crypto firms and former regulators are urging quick action before the August recess while prediction markets and traders have trimmed the odds that the bill will become law in 2026.
  • If the Senate fails to pass the bill before recess, lawmakers and markets expect continued legal uncertainty that could push regulators to act unilaterally and slow U.S. crypto industry growth.