Cryptocurrency advocacy groups support passage of CLARITY bill amid ethical rules controversy

Three major crypto advocacy groups urge Senate leadership to push for a full vote on the Digital Asset Market Clarity Act

The three major cryptocurrency advocacy groups have jointly called on the U.S. Senate leadership to allow the Digital Asset Market Clarity Act to enter the "full vote" stage and strive to have a full vote before the August state recess. In a joint letter to Majority Leader John Thun and Minority Leader Chuck Schumer on Friday, the groups said bipartisan consultations were still ongoing and urged senators to continue advancing discussions.

The call comes as the bill has passed through the Senate Banking and Agriculture Committees, but its voting timing remains uncertain due to political games and unresolved policy differences. The Republicans currently lead the Democrats with a 52 - 47 margin in the Senate. If the bill is to be passed, it needs to win at least 60 votes in support-which means that cross-party cooperation remains the key.

Core Points

Cryptocurrency advocacy groups have asked the Senate leadership to place the Digital Asset Markets Clarity Act on the agenda for a full vote before recess in August.

The bill has been passed by the Senate Banking and Agriculture Committees, but some members plan to delay voting until specific provisions are dealt with.

Republicans earlier this week released the market-structure text of the Clarification Act, which contains ethics provisions to address public corruption issues.

Democrats criticized the ethics clause as insufficient, increasing the possibility of a deadlock in negotiations and a postponement of the vote.

Markets have factored in uncertainty: As of Friday, the Kalshi Incident Contract showed a roughly 40.3% probability of the Senate voting before its August recess.

Advocates urge full house vote amid legislative uncertainty

In a joint letter, the Cryptography Innovation Commission, the Digital Chamber of Commerce and the Blockchain Association urged senators to give priority to promoting the Clear Act to the full house vote. The groups acknowledged that "constructive bipartisan consultations are still ongoing" and encouraged lawmakers to continue to have candid discussions between the two sides.

Progress at the committee level does not ensure that bills will be submitted to the entire court in a timely manner. Although the bill has passed review by the Senate Banking and Agriculture subcommittee, the letter suggests that political leaders are still weighing whether the final wording will meet key concerns. Timing is crucial: If senators fail to vote before recess in August, the debate could stretch into the weeks leading up to the 2026 U.S. midterm elections, which could reshape the incentive structure for lawmakers in both parties.

Ethics and market structure clauses become the crux

The Clarification Act is widely regarded as one of the most influential bills in the U.S. against cryptocurrencies, in part because it aims to provide clearer rules for digital asset markets. According to the text of the bill released earlier this week, the Republican Party's latest efforts include introducing ethics provisions aimed at prohibiting public officials from issuing or promoting cryptocurrencies.

However, these measures appear to be the focus of doubts among Democrats. According to reports, Senator Ruben Gallego criticized the Republican counterproposal for failing to live up to the level Democrats promised in the negotiations. Gallego said that after extensive work with Republican colleagues, the new proposal did not take seriously to address concerns raised in early consultations.

"... It's hard to accept that after we've done all the work with our Republican colleagues, they spend months interpreting it, and then come back and decide that their proposal is close enough."

This criticism highlights the core contradiction: Even if the bill's broader market-structure goals are supported, lawmakers may still be reluctant to move forward with a vote without a stronger consensus on ethical and law-enforcement safeguards.

Industry groups believe the Clarification Act is critical for both compliance and innovation

Although the legislative battle has focused mainly on ethics provisions, industry leaders have also highlighted the practical impact of the Clarification Act on U.S. digital asset regulation-especially beyond traditional custody models.

Coinbase CEO Brian Armstrong believes that the United States still lacks a comprehensive federal regulatory framework, a lack that allows harmful behavior to reach customers while moving business activities outside U.S. regulation. He posted on social media platform X on Wednesday that the bill would provide consumer protection, enforcement tools and chart the way for the United States to lead the industry.

Orest Gavriliak, chief legal officer of DeFi platform 1inch, discussed the bill on Friday's podcast. He said the Clarification Act would help establish a legal framework for non-escrow agreements, in contrast to regulators 'attempts to incorporate decentralized systems into escrow frameworks. Gavriliak believes the rules designed for the trusteeship model cannot be directly applied to non-trusteeship agreements-an issue he said made passage of the bill "critical."

Market signals reveal timing, and what to focus on next

Even with committee approval, reaching the 60-vote threshold remains a major challenge. This requirement creates intrinsic motivation for lawmakers to negotiate deeply on outstanding terms rather than accept a narrow alliance. As a result, procedural timing-whether leadership can muster enough consensus to arrange a full house vote-may be as important as the final bill text itself.

As of Friday, the Kalshi Incident Contract showed that users believed the probability of the Senate voting on the Clarification Act before its August recess was 40.3%, reflecting the market view that even if the bill is advancing, it will not be passed immediately.

The next key question for investors, traders and developers is not just whether the Clarification Act can pass procedural obstacles, but what changes, if any, the bill will make as senators try to reconcile ethic-related differences. If moral language remains the main point of contention, negotiations may continue to expand rather than shrink. Conversely, if Senate leadership can find enough support to advance full review, the Clarification Act is likely to become the core reference point for U.S. cryptocurrency compliance planning before lawmakers move to a broader mid-term election political cycle.