Crypto groups back U.S. Senate CLARITY vote as ethics dispute clouds passage

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Crypto groups back CLARITY vote

Highlights

Crypto Council for Innovation, Digital Chamber, and Blockchain Association urge Senate leaders to prioritize the Digital Asset Market Clarity (CLARITY) Act, needing 60 votes for passage.
Senate Republicans seek an August vote on CLARITY, while unresolved ethics provisions and partisan disputes threaten to delay consideration to before the 2026 U.S. midterms.
Kalshi event contracts as of Friday price only a 40.3% probability that the CLARITY Act will pass before the Senate's August recess.

Senate timing and industry push

As reported by Cointelegraph, the Crypto Council for Innovation, Digital Chamber and Blockchain Association write to Senate Majority Leader John Thune and Minority Leader Chuck Schumer on Friday urging floor consideration of the Digital Asset Market Clarity, or CLARITY, Act.

In the letter, the three advocacy groups say bipartisan negotiations are still underway and encourage senators to keep working toward broader support for the legislation. The bill has already advanced through the Senate banking and agriculture committees, but it still needs 60 votes to pass in the chamber, where Republicans hold a 52-47 majority over Democrats.

Republican lawmakers are pushing for a vote before the Senate breaks in August. If that window closes without action, consideration could slip into the weeks before the 2026 U.S. midterm elections, adding political difficulty to an already contested debate.

Ethics provisions remain a sticking point

Resistance is centering on ethics language in the latest version of the bill. Republicans release the market structure text earlier this week with provisions barring public officials from issuing or sponsoring cryptocurrencies, but several Democrats argue those safeguards do not go far enough.

Senator Ruben Gallego says on Thursday, according to Politico, that the response from Republicans is not a serious effort after months of bipartisan work on the issue. His comments underscore how ethics rules are becoming one of the main obstacles to final passage.

Industry executives and legal advisers continue to argue that the legislation would give the crypto sector a clearer federal framework. Coinbase Chief Executive Brian Armstrong says the absence of national rules pushes activity offshore and leaves room for failures such as FTX, while 1inch Chief Legal Officer Orest Gavryliak says the bill would better recognize non-custodial protocols instead of forcing them into traditional custodial models.

Market expectations still reflect uncertainty over the timetable. As of Friday, Kalshi event contracts imply a 40.3% chance that the bill passes before the Senate's August recess.

Our earlier coverage of the EU-U.S. Joint Financial Regulatory Forum in Brussels outlined how European and U.S. regulators are aligning on digital finance and digital-asset policy alongside broader market-structure priorities. We noted discussions spanning tokenisation, operational resilience and AML/CFT reforms, with both sides reaffirming continued cooperation as each jurisdiction advances its own crypto rulemaking.

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