U.S. CLARITY Act races to July deadline before August Senate recess

The Digital Asset Market CLARITY Act, which would create a statutory framework for U.S. crypto assets, cleared the House and passed the Senate Banking Committee on May 14, 2026. The bill now awaits a full Senate floor vote and must secure 60 votes, meaning at least seven Democrats must join Republicans.

A July 4 signing target was missed, and the next critical deadline is August 7, the last Senate session before the summer recess. Lawmakers are still reconciling differing versions from the Banking and Agriculture committees, and ethical concerns—highlighted by President Donald Trump’s disclosed crypto income—are delaying bipartisan support. Stable‑coin yield rules remain a flashpoint, with banking groups such as JPMorgan demanding a ban, while exchanges argue for activity‑based rewards.

Senators Cynthia Lummis, Tim Scott and Bill Hagerty are pressing for a vote before the recess; law‑enforcement groups have softened opposition, and market‑watching platforms such as Polymarket currently price the bill’s passage odds at roughly 55 %. If enacted, the Act could shift regulatory authority from the SEC to the CFTC for many tokens, establish enforcement funding, and provide clarity that investors say would unlock capital for crypto projects. Failure to pass before the recess could push the bill’s enactment into 2027.