Summary
The Digital Asset Market Clarity Act (CLARITY Act) remains stalled in the Senate as lawmakers fail to reach bipartisan agreement on ethics provisions. The combined text of the Senate Banking and Agriculture Committee drafts is not yet public. Senators Cynthia Lummis and Bernie Moreno were scheduled to brief President Trump on the bill on July 16, but no public readout of that meeting was released. The biggest outstanding issue is the lack of an ethics provision that would block senior government officials from profiting off their own crypto ventures.
Senator Elizabeth Warren sent a letter to Trump requesting a financial disclosure covering the first half of 2026, noting that his 2025 disclosure showed over $1.4 billion in crypto-related earnings. Galaxy Digital cut its odds of the CLARITY Act becoming law in 2026 to 50%, citing the lack of a unified Senate text, no firm floor schedule, and a narrowing legislative window. Anchorage Digital used the GENIUS Act's first anniversary to renew calls for CLARITY Act passage. Polymarket data indicates a 40% probability of enactment in 2026.
Key Facts
- CLARITY Act: stalled on ethics provisions; no bipartisan agreement
- Combined Senate text: not yet public
- Lummis-Moreno Trump briefing: July 16; no public readout
- Key issue: ethics provision blocking senior officials from profiting from crypto ventures
- Senator Warren: requested Trump's H1 2026 financial disclosure; noted $1.4B+ in 2025 crypto earnings
- Galaxy Digital odds: 50% for 2026 passage (cut from higher)
- Polymarket odds: 40% for 2026 enactment
- House passed: July 2025 (294-134)
- Senate Banking Committee passed: May 2026 (amended version)
- Anchorage Digital: renewed call for passage on GENIUS anniversary
- Banking groups: ABA, ICBA opposed stablecoin yield provisions
- Legislative window: narrowing before lawmakers leave Washington
Why It Matters
The CLARITY Act is the companion legislation to the GENIUS Act, designed to establish the first federal regulatory framework for the broader digital asset market. Its passage would classify digital assets into three categories, establish exclusive CFTC jurisdiction over digital commodities, and apply BSA regulations to digital asset market participants. The ethics impasse is the single biggest obstacle, and with the legislative window narrowing, the odds of passage in 2026 are declining. If CLARITY fails this year, the entire U.S. digital asset regulatory framework remains incomplete.