U.S. Senate pushes CLARITY Act amid ethics dispute and looming recess

CLARITY Act U.S. Senate ethics proposal state attorneys general August recess

The CLARITY Act, a comprehensive digital‑asset market‑structure bill, cleared the House with a 294‑134 vote in July 2025 and was approved by the Senate Banking Committee 15‑9 in May 2026. To become law it must secure 60 votes in the full Senate before the August recess, but a key ethics enforcement provision remains contested. President Donald Trump is weighing a bipartisan ethics proposal that would let state attorneys general sue the Department of Justice if the DOJ fails to enforce the rules. The proposal was negotiated by Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego.

Industry groups are pressing for action. Grayscale Investments sent a letter to Senate leaders urging a floor vote before the recess, while the National Sheriffs’ Association warned that the bill would create broad exemptions from KYC, AML and sanctions requirements for certain DeFi participants. Treasury Secretary Scott Bessent publicly criticized Senate Democrats for blocking a vote, and the Senate calendar is crowded with other legislation and the upcoming mid‑term election cycle, heightening the risk of further delay.

Market participants are watching closely: XRP rallied on news of a possible procedural vote, and major banks such as Morgan Stanley and BNY Mellon have moved ahead with crypto‑related products, underscoring the industry’s desire for regulatory clarity.

Entities

CLARITY Act · 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

Claims

What the coverage asserts, and how many sources carry each claim.

[DISPUTED] The CLARITY Act is pending a Senate floor vote before the August recess. www.tronweekly.com · crypto.news · blockonomi.com · coinpedia.org · www.blocktempo.com
[● 4 SOURCES] Grayscale Investments sent a letter to Senate leaders urging a floor vote on the CLARITY Act before the August recess. crypto.news · coinpedia.org · news.bitcoin.com
[● 7 SOURCES] The House passed H.R. 3633 (the CLARITY Act) by a 294‑134 vote on July 17, 2025. blockonomi.com · crypto.news · coinpedia.org · www.brasilemfolhas.com.br · bpi.com · +1 more
[● 8 SOURCES] The Senate Banking Committee approved the CLARITY Act 15‑9 on May 14, 2026. blockonomi.com · blockchainreporter.net · crypto.news · www.coinspeaker.com · www.brasilemfolhas.com.br · +2 more
[○ 1 SOURCE] Morgan Stanley launched spot Ethereum and Solana exchange‑traded products. blockchainreporter.net
[○ 1 SOURCE] The SEC warned it would write its own crypto market rules if the CLARITY Act stalls. blockchainreporter.net
[○ 1 SOURCE] BNY Mellon moved part of its fund record‑keeping infrastructure onto a blockchain. blockchainreporter.net
[● 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. coingape.com
[● 5 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. www.crypto-insiders.nl · www.blocktempo.com · www.tronweekly.com · coingape.com
[● 3 SOURCES] Treasury Secretary Scott Bessent publicly criticized Senate Democrats for blocking a floor vote on the CLARITY Act. www.coinspeaker.com · coingape.com · www.tronweekly.com
[● 5 SOURCES] Senators Thom Tillis (R‑NC) and Ruben Gallego (D‑AZ) negotiated a bipartisan ethics package for the CLARITY Act. www.crypto-insiders.nl · www.blocktempo.com · www.tronweekly.com · coingape.com
[● 3 SOURCES] The CLARITY Act would divide digital‑asset oversight between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. crypto.news · news.bitcoin.com · blockchainreporter.net