U.S. Crypto Legislation Reaches Critical Threshold: Timeline Set for New 70-Page Draft
An updated version of the Clarity Act, which aims to regulate the cryptocurrency industry in the U.S. Senate, is expected to be released to the public next week.
Efforts to establish a legal framework for crypto asset markets in the United States have reached a critical juncture. The Digital Asset Market Clarity Act, which the Senate Banking and Agriculture committees are working on, is being reshaped to capitalize on its final chances in the legislative process. Industry representatives anticipate that the new draft could reach the Senate floor by late July.
Consumer Protection and Ethical Guidelines Take Center Stage in Crypto Law
The newly consolidated text focuses more heavily on consumer protections, including approximately 70 pages of additions. However, the Democrats’ insistence on ethical restrictions preventing senior government officials from establishing commercial ties with the crypto sector remains the biggest obstacle. If a consensus on these ethical boundaries cannot be reached, securing the 60 votes needed for the bill to pass the Senate appears quite difficult.
The legislative process at the U.S. Capitol, as shown in the image, also includes provisions stipulating that developers should not be considered money transmitters as long as they do not touch customer assets. This clause, which is vital for the decentralized finance (DeFi) sector, is among the most supported parts of the bill. On the other hand, filling vacant seats at agencies like the SEC and CFTC and the ongoing negotiations with the White House directly impact the likelihood of the bill becoming law.
If the bill passes the Senate, it must also receive House approval before heading to President Donald Trump‘s desk. However, political friction and the approaching election cycle compress the chances of this comprehensive cryptocurrency regulation being implemented before 2026 into a very limited timeframe. According to the current schedule, Congress has only a few weeks of working time left for the bill to be finalized within this year.