Senate Majority Leader John Thune plans to push the CLARITY Act to the Senate floor before the August recess despite lacking sufficient votes. The bill needs 60 votes to overcome a filibuster, while Republicans hold only 53 seats and require roughly seven additional votes from Democratic senators. Remaining time is growing tight as the Senate is scheduled to stay in Washington only until August 7. That window leaves little room for amendment filings and procedural votes. Failing to reach a deal before the recess could delay deliberations into the 2026 election cycle, complicating the bill’s legislative path.
Senator Cynthia Lummis released the latest consolidated text on July 22, combining proposals from the Senate Banking Committee and the Agriculture Committee. However, the move ran into opposition from seven Democratic senators led by Angela Alsobrooks, who raised concerns that consumer protection and illicit finance regulations remain weak. Alsobrooks rejected leaving ethics enforcement authority solely to the Department of Justice (DOJ), calling the proposal “not serious.” Alsobrooks’ stance is critical as she was one of two Democrats to support the bill in committee in May 2026.
Wall Street Support vs Official Ethics Rules
The latest draft of the CLARITY Act includes a temporary ban barring federal officials - from the president, vice president, and members of Congress to federal judges - from issuing or sponsoring digital assets, proposed to remain in effect until 2029. Despite being stalled by Senate ethics rules, backing from industry players continues to pour in. Fidelity, the world’s third-largest asset manager with $7.1 trillion in assets under management, formally urged the Senate to pass the bill without delay.
Similar support came from Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, and Goldman Sachs CEO David Solomon. At the institutional level, the Crypto Council for Innovation, the Digital Chamber, and the Blockchain Association sent a joint letter to Thune and Chuck Schumer. The National Fraternal Order of Police, an organization with 382,000 members, has now shifted its stance to support the bill after previously opposing it.
What Remains Unknown About the TRUMP Maneuver
Amid the debate over public official ethics rules and digital assets, the Trump team transferred 16.84 million TRUMP tokens valued at $16.91 million to three Fireblocks custody addresses on July 25. Arkham Intelligence noted that these receiving addresses match those that previously transferred funds to BitGo. TRUMP itself is currently trading around $1.57, down 83% from its yearly high and 98% off its record peak of $73.43 in January 2025.
Markets await clarity on the Trump team’s next move, given that they can still sell up to 96 million tokens. This amount represents 9.6% of the total supply or roughly 40% of the current circulating supply of 237 million tokens. The token’s ownership structure is heavily centralized, with insiders still holding 80% of the total supply. Around 670 million tokens, or 67%, have already been unlocked. There is no confirmation yet on whether the transfer to Fireblocks is a step toward liquidating the remaining coins on open exchanges.
Calculating the Odds Ahead of Recess
Market participants take a pessimistic view of the bill’s outlook. Prediction platform Polymarket pegs the odds of the CLARITY Act passing into law in 2026 at just 33%. Galaxy Research lowered its estimate even further to 30%. Disputes over who has the authority to act against ethics violations by public officials remain the primary unresolved obstacle. Reaching a compromise over the next two weeks stands as the only way forward before deliberations are pushed into an election year.
Source: 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.
