In comments to reporters Thursday (July 23), Thune of South Dakota said he does not expect the digital assets market-structure bill to make it to a vote before the summer recess effectively brings a halt to substantive non-essential legislation before the November midterm elections, Politico reported Thursday.
Ethics remains the main sticking point. Republicans on Wednesday (July 22) introduced a revised, 616-page draft of the bill that would bar federal officials, including the president, from issuing or sponsoring digital assets. Enforcement of the ban would fall exclusively to the Department of Justice, rather than the Securities and Exchange Commission or the Commodity Futures Trading Commission.
Democrats rejected Republicans’ framework, arguing it does not go far enough in cracking down on President Donald Trump’s ability to profit from his cryptocurrency activity, the Politico said, dimming prospects for overcoming a Senate filibuster.
Sen. Ruben Gallego of Arizona, one of only two Democrats to vote in favor of an earlier draft of the bill in the Banking Committee, called the latest version “not a serious effort,” according to the report.
“I can’t imagine that that’s a serious effort—after all the work that we’ve done with our Republican colleagues, that they would take the months and months of work and somehow interpret that and turn around and think what they offered was even remotely close,” Gallego said, per the report.
The crypto industry is continuing to press its case, however. In a joint letter to Thune and Senate Minority Leader Chuck Schumer of New York, the Crypto Council for Innovation, the Blockchain Association and The Digital Chamber called the Clarity Act essential and urged the leaders to begin floor deliberations on the measure even as negotiations continue in committee.
“This is a crucial opportunity for the Senate to improve upon the status quo by establishing durable rules for digital assets that protect consumers, safeguard markets, and ensure that innovation can thrive in the United States,” the letter said.
“[T]raditional financial institutions, asset managers and payment companies have recognized the inherent value of blockchain technology and are increasingly integrating digital assets into their products and services,” the letter added. “Yet, there is no federal framework to delineate rules clearly for digital asset businesses and innovators, leaving American investors, consumers,and builders without uniform protections or necessary guardrails to support responsible innovation.”
Some industry leaders questioned Thune’s characterization of the bill’s prospects. In a post on social platform X Friday (July 24), Solana Policy Institute President Kristin Smith, who is also the former CEO of the Blockchain Association, wrote: “I’ve had many conversations since this came out yesterday, and it doesn’t reflect the current state of play. There is a clear path to pass the Clarity Act before the recess on August 7—and we must seize it.”
If passed, the Clarity Act would legalize most cryptocurrency activity in the U.S. It draws jurisdictional lines between the SEC and CFTC, with most regulatory responsibility assigned to CFTC. Apart from the ethics issues, the banking industry continues to press for changes to the measure to strengthen the prohibition in the GENIUS Act on stablecoin issuers offering interest or other incentives.
With the clock ticking, even traders on crypto-friendly prediction market Polymarket this month gave the Clarity Act becoming law in 2026 a chance of 32%.
