The U.S. crypto industry may have to wait a little longer for regulatory clarity as Congress officially heads into its July 4 recess. Both the House and Senate are out until July 13. However, according to Eleanor Terrett, negotiations around the Clarity Act are expected to continue behind closed doors during the break. Here are the latest CLARITY Act Updates as discussions move forward during Congress’s recess.
With lawmakers running out of time, July is increasingly being viewed as the make-or-break month for the bill.
Senate Republicans Push for Faster Action
Terrett reported that Senate Republicans are feeling a growing sense of urgency to move the Clarity Act forward.
Part of that pressure comes after President Donald Trump recently said he would not sign a bipartisan housing bill until Congress passes the SAVE Act. This is a controversial voter ID measure.
While it remains unclear whether Trump would take a similar approach with crypto legislation, the episode highlighted just how limited floor time has become in Congress.
Senate Majority Leader John Thune has reiterated that passing the Clarity Act remains a priority. However, he admitted this week that time is running short to resolve key issues.
Ethics Negotiations Remain Unfinished
One of the biggest unresolved topics remains ethics rules tied to Trump’s crypto businesses.
According to Terrett, Democratic support could depend heavily on whether the final legislation includes stronger ethics provisions. Senators Ruben Gallego and Angela Alsobrooks have already said their continued backing hinges on reaching an acceptable ethics agreement.
New compromise proposals are expected to be exchanged during the recess.
Several Major Issues Still Need Work
Beyond ethics, lawmakers still need to settle disagreements over state preemption rules, exchange conflicts of interest, and affiliate trading.
Law enforcement groups and Catholic organizations have also intensified opposition to the BRCA provision. They argue it could make it harder to investigate crimes such as human trafficking involving digital assets.
Stablecoin yield could also resurface as a contentious issue. Banking lobby groups continue to pressure lawmakers to revisit earlier compromises.
July Could Decide the Bill’s Future
Scheduling remains another challenge. Thune has said Congress will first focus on the annual defense bill when lawmakers return. As a result, this could potentially push a Clarity Act vote into the latter half of July.
Industry leaders remain cautiously optimistic. Miles Jennings said deadlines often force agreements. Meanwhile, Kristin Smith believes bipartisan support still gives the bill a viable path forward.
However, Alex Thorn recently lowered the chances of passage this year from 60% to 50%. He cited the shrinking legislative calendar and lack of visible progress.
For now, all eyes are on Washington as negotiations continue during the recess.
