The US Senate has exactly one week left of floor time in Washington before the August recess. Amid this deadline, Senator Cynthia Lummis confirmed that Majority Leader John Thune is keeping the CLARITY Act on the agenda.
The bill splits digital asset oversight between the SEC and CFTC, and regulates the operations of exchanges, brokers, and token issuers. To break the deadlock, Senators Thom Tillis and Ruben Gallego submitted a revised ethics proposal to the White House. The document proposes giving state authorities enforcement power over the ban on federal officials issuing or sponsoring tokens, rather than making it the exclusive right of the Attorney General.
Addressing Conflict of Interest Concerns
The compromise by Tillis and Gallego directly targets concerns raised by Democrats. The party had previously highlighted potential conflicts of interest if enforcement authority remained solely with the Department of Justice, an executive branch agency.
On July 22, the White House had already received a federal ethics restriction proposal resulting from negotiations between Lummis and Bernie Moreno. However, the final text of that agreement had not been made public before this latest revision reached the president’s desk.
Vote Count Still Falls Short
The challenge for this legislation is not just drafting, but political math. Republicans currently hold 53 Senate seats. They need at least seven Democratic votes to clear the 60-vote procedural threshold so the bill can advance.
That threshold is not unattainable. In July 2025, the US House of Representatives passed its version of the CLARITY Act in a 294-134 vote, backed by 78 Democrats.
Frustrated by the slow pace, Treasury Secretary Scott Bessent urged an immediate vote, accusing Democrats of deliberately stalling the completion of the crypto legislation.
Unresolved Disputes
Official ethics rules are not the only sticking point in the bill. Provisions regarding blockchain developer regulations and stablecoin rewards remain unsettled without consensus.
If the Senate fails to vote before the August recess, the CLARITY Act will be pushed to the post-recess calendar. The window to reconcile the Senate version with the House-passed bill is narrowing. There are only two options: find a compromise in the next seven days, or let the legislation gather dust in bureaucratic limbo.
Via crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
