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The U.S. Senate is set to resume consideration of the Digital Asset Clarity (CLARITY) Act this week as lawmakers return from an extended Memorial Day recess, with Democrats conditioning their support on stronger provisions addressing potential conflicts of interest among elected officials.
The Republican-led bill, which passed the House of Representatives in July 2025, aims to establish a comprehensive market structure for cryptocurrencies by granting greater authority to the Commodity Futures Trading Commission (CFTC) over digital assets. It cleared two key Senate committees—the Agriculture Committee in January and the Banking Committee in May—before the break, but faces ongoing pushback from both the crypto industry and traditional banking sector over issues including stablecoins and tokenized equities, reported CoinTelegraph.
“This will actually be the biggest financial regulatory bill that Congress has done in quite some time, certainly since Dodd-Frank,” Coinbase Chief Policy Officer Faryar Shirzad told Fox Business on Monday.
Banking industry leaders have also voiced reservations. JPMorgan CEO Jamie Dimon stated on Friday that the sector would not accept the bill as written, citing provisions that would allow crypto companies to pay interest on user deposits and stablecoin balances.
Bipartisan Hurdles and Ethics ConcernsLawmakers this week are expected to begin reconciling the differing versions of the legislation from the two committees, with some Senate insiders anticipating a floor vote as early as August. However, the path forward remains uncertain due to Democratic demands for ethics safeguards.
White House crypto adviser Patrick Witt indicated in May that the administration was targeting U.S. Independence Day for progress, but significant obstacles remain. Senator Kirsten Gillibrand (D-NY) warned in May that “there will be no one voting for this bill if we don’t have an ethics provision.” Banking Committee members did not advance related amendments, with some Republicans arguing the issue should be handled by the full Senate.
Critics, including Senator Elizabeth Warren (D-MA), have highlighted potential conflicts involving President Donald Trump, pointing to his memecoin and his family’s involvement in the crypto venture World Liberty Financial.
The bill would require 60 votes to advance in the Senate, necessitating at least some Democratic support even in the Republican-led chamber.
Prediction markets reflect the uncertainty. As of Monday, Polymarket bettors placed the odds of the CLARITY Act passing this year at approximately 55%, with more than $1.1 million wagered on the outcome.
GENIUS Act Implementation Moves Forward
In a related development, the public comment period for the GENIUS Act—a stablecoin payments bill signed into law in July 2025—closes on Tuesday. The U.S. Treasury Department, FDIC, FinCEN, and the Office of Foreign Assets Control received input on the measure, despite at least one banking group requesting an extension.
Once finalized, the GENIUS Act is slated to take effect 18 months after enactment or 120 days after regulators issue final rules, marking a significant step in the regulatory framework for stablecoin payments.
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