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Draft CLARITY bill nears release in Senate

2026-07-10 18:17:02
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A new version of the Digital Asset Markets CLARITY Act may be announced next week.

According to people familiar with the matter, negotiations among Senate members are accelerating to consolidate a unified text before the August recess. An updated version of the Digital Asset Markets CLARITY Act may be released as early as next week.

Two committees, an updated draft of a bill

is expected to merge two parallel working lines in the Senate. The Senate Banking Committee has been responsible for handling provisions related to the U.S. Securities and Exchange Commission, including issues such as investor protection and the identification of security attributes of digital assets, while the Senate Agriculture Committee focuses on matters related to the U.S. Commodity Futures Trading Commission, such as commodity market regulation, exchange registration, and derivatives. Merging these two lines into a single text is a prerequisite for any full house vote.

Consumer protection is expected to receive more emphasis in the revised version. The Banking Committee described the bill as establishing clear protections for digital asset market participants and providing ordinary Americans with the tools they need to participate in the digital asset market. The alternative text covers a broad framework of market structures, covering illegal finance, decentralized finance, stablecoin yield limits, tokenization standards, developer protection, and customer property and bankruptcy protection.

Democratic Party\'s voting problem

Negotiators are still trying to win Democratic support to pave the way for a possible non-division vote later this month. The current vote situation is very tight. On July 4, 2026, as the United States celebrated its 250th Independence Day, the bill was still on the Senate\'s legislative schedule. It was neither scheduled for a full vote nor blocked by three related disputes. These disputes prevented the bill from obtaining the 7 to 9 Democratic votes needed to break through a filibuster process that required 60 votes to terminate.

The Senate will end its recess on July 13, leaving about three weeks to be available before recess in August. Analysts on Wall Street and Washington agree that this window is the last real chance for passage of the 2026 cryptocurrency regulation bill. Bryan Gardner, Stifel\'s chief Washington policy strategist, wrote that the bill may need to pass the Senate before the end of July, and its prospects will deteriorate significantly if the August recess deadline is missed. Beacon Policy Advisors was more direct, pointing out that the miss could mean the complete end of the legislative path in 2026.

The Digital Asset Markets CLARITY Act was passed in the House of Representatives on July 17, 2025 by a vote of 294 to 134. At that time, more than 70 Democratic members voted bipartisan in support, making it the strongest support given to digital asset legislation by Congress in U.S. history. Even so, to become law, the bill still needs to be reconciled with the Senate Agriculture Committee\'s version, passed by the Senate with a full vote of 60 votes, agreed with the version passed by the House, and ultimately signed by the president.

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