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CLARITY Act Faces Senate Ethics Hurdle as July 4 Deadline Nears
Ethics provisions tied to Trump family crypto ties stall Senate talks on the CLARITY Act. The White House wants a July 4 signing. A filibuster-proof coalition hangs in the balance.
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The White House wants the Digital Asset Market Clarity Act signed into law by July 4. Lawmakers say they are optimistic about meeting that window. Senate negotiations have hit a specific snag: ethics provisions tied to administration officials with family links to crypto ventures.
The bill, which draws jurisdictional lines between the SEC and the CFTC over digital assets, passed the House on July 17, 2025, with a 294-134 vote. The Senate Banking Committee advanced it on May 14, 2026. The full Senate must now reconcile final language.
The CLARITY Act creates a classification framework. Digital assets deemed "ancillary assets" would fall under SEC oversight as securities. Other digital commodities would land under the CFTC. The goal is replacing the current regulation-by-enforcement approach with a compliance pathway for projects and exchanges. Representative French Hill introduced the bill on May 29, 2025. It follows the GENIUS Act, which established a stablecoin regulatory framework and passed last year.
White House adviser Patrick Witt has been working with Senate Banking Chair Tim Scott and Senator Cynthia Lummis, both vocal advocates for crypto-friendly rules, to bridge differences. Witt has held multiple closed-door sessions with Senate leadership, two people familiar with the talks said.