US Senate Pushes CLARITY Act Amid Ethics Deal and August Recess Deadline
The U.S. Senate is weighing the Digital Asset Market CLARITY Act, a bill that would divide cryptocurrency oversight between the SEC and CFTC. The House passed the measure (H.R. 3633) by a 294‑134 vote on July 17, 2025, and the Senate Banking Committee approved it 15‑9 on May 14, 2026. Lawmakers need at least 60 votes to overcome a filibuster, and the Senate calendar is closing as the August recess begins on August 8.
Senators Thom Tillis (R‑NC) and Ruben Gallego (D‑AZ) have drafted a bipartisan ethics amendment that would empower state attorneys general to sue the Department of Justice if it fails to enforce ethics rules on federal officials. The White House is reviewing the proposal, and President Donald Trump is said to be weighing it. Industry groups—including Grayscale Investments, Strategy Inc., Michael Saylor, and former Barclays CEO Bob Diamond—have urged Senate leaders to schedule a floor vote before the recess, warning that regulatory uncertainty hampers institutional participation.
Law‑enforcement bodies such as the National Sheriffs’ Association have warned that the bill’s Section 604 would grant broad AML and sanctions exemptions to certain DeFi participants, raising public‑safety concerns. The SEC has also warned it will write its own crypto market rules if the CLARITY Act stalls. Treasury Secretary Scott Bessent publicly criticized Senate Democrats for blocking a vote, adding pressure for a timely decision.
Entities: CLARITY Act · Cynthia Lummis · Digital Asset Market CLARITY Act · Grayscale Investments · Michael Saylor · National Sheriffs’ Association · President Donald Trump · Scott Bessent · Securities and Exchange Commission · Senator Ruben Gallego · Senator Thom Tillis · United States Senate
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 6 SOURCES] The CLARITY Act is pending a Senate floor vote before the August recess. (multiple articles)
- [● 3 SOURCES] Grayscale Investments sent a letter to Senate leaders urging a floor vote on the CLARITY Act before the August recess. (clm_9dc3d5b0)
- [● 3 SOURCES] The House passed H.R. 3633 (the CLARITY Act) by a 294‑134 vote on July 17, 2025. (clm_725f5016)
- [● 5 SOURCES] The Senate Banking Committee approved the CLARITY Act 15‑9 on May 14, 2026. (clm_e4847d9f)
- [○ 1 SOURCE] Morgan Stanley launched spot Ethereum and Solana exchange‑traded products. (article cf12bca4)
- [○ 1 SOURCE] The SEC warned it would write its own crypto market rules if the CLARITY Act stalls. (clm_a7e49adf)
- [○ 1 SOURCE] BNY Mellon moved part of its fund record‑keeping infrastructure onto a blockchain. (article cf12bca4)
- [● 2 SOURCES] The National Sheriffs’ Association warned that the CLARITY Act would grant broad exemptions from registration, KYC, AML, and sanctions-law requirements for certain DeFi participants. (clm_98258567)
- [● 3 SOURCES] President Donald Trump is weighing a bipartisan ethics proposal that would allow state attorneys general to sue the Department of Justice for ethics enforcement. (new)
- [● 2 SOURCES] Treasury Secretary Scott Bessent publicly criticized Senate Democrats for blocking a floor vote on the CLARITY Act. (new)
- [● 3 SOURCES] The ethics proposal was drafted by Senators Thom Tillis (R‑NC) and Ruben Gallego (D‑AZ). (new)