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- U.S. senators have sent a new CLARITY Act compromise to the White House, hoping to resolve ethics disputes that have stalled the legislation.
- The bill faces mounting time pressure as Congress approaches its August 7 recess, with supporters racing to secure enough votes.
- Industry leaders warn that further delays could weaken U.S. leadership in digital assets and push crypto innovation overseas.
Senate lawmakers are making another attempt to move the CLARITY Act forward after sending a revised compromise on the bill’s ethics provisions to the White House.
According to reports, Sen. Thom Tillis and Sen. Ruben Gallego submitted updated language on Thursday in an effort to break the deadlock that has become the biggest obstacle to passing the landmark cryptocurrency legislation.
While the exact details of the compromise have not been made public, the proposal represents the latest effort to revive one of the crypto industry’s most closely watched bills.
Ethics Debate Remains the Biggest Obstacle
Negotiations have largely centered on ethics rules related to President Donald Trump’s cryptocurrency interests.
Democrats have pushed for stronger restrictions following Trump’s involvement with a memecoin and his family’s connections to World Liberty Financial, arguing the legislation should include broader conflict-of-interest protections.
A previous draft reportedly prohibited public officials and their spouses from issuing or sponsoring digital assets but did not extend those restrictions to other family members. It also included a sunset clause that would expire the ethics provisions in January 2029, drawing criticism from lawmakers and policy experts who argued the restrictions would be difficult to enforce.
Senate Faces a Tight Deadline
Time is becoming a critical factor for supporters of the CLARITY Act.
Lawmakers hope to advance the bill before the Senate begins its August 7 recess, but the legislation is competing with several other priorities and still requires 60 votes to overcome procedural hurdles.
Senate Majority Leader John Thune has indicated the legislation remains on the chamber’s agenda, although any immediate action could begin with a procedural vote rather than final passage.
Other Issues Continue to Divide Lawmakers
Beyond the ethics debate, additional disagreements remain over provisions governing stablecoin rewards.
Some banking groups argue that allowing stablecoin issuers to offer yield could encourage consumers to move deposits away from traditional banks, while crypto industry advocates contend that limiting those features would slow innovation and reduce the competitiveness of U.S. digital asset markets.
The ongoing disagreements have made reaching bipartisan consensus increasingly difficult.
Industry Warns the Stakes Are High
Treasury Secretary Scott Bessent criticized the delays, arguing that continued political disagreements could undermine U.S. leadership in digital assets.
Meanwhile, the Crypto Council for Innovation (CCI) warned that failure to pass the CLARITY Act could allow other jurisdictions, including the European Union, to strengthen their lead in crypto regulation and attract greater investment.
Supporters of the legislation argue that establishing a clear regulatory framework would encourage institutional adoption, strengthen U.S. competitiveness, and reinforce the country’s leadership in blockchain innovation.
With Congress preparing to recess, the coming days could prove pivotal for the future of one of the most significant cryptocurrency bills currently under consideration.
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