CLARITY Act Nears the Finish Line

U.S. Treasury Secretary Scott Bessent said on July 21 that work on the CLARITY Act had entered its final stage. Borrowing a phrase from American football, he described it as being on the “1-yard line.” He urged Congress to pass the legislation before the August recess.

The bill aims to establish clear rules for the digital asset market. Kevin Cramer, a member of the Senate Banking Committee, also believes that an agreement is within reach. According to him, lawmakers are gradually resolving the remaining points of contention.

The bill needs at least 60 votes to pass the Senate. Republicans hold 53 seats, meaning they require the support of at least seven Democrats. Senate Majority Leader John Thune wants to hold the vote before the August recess. Cramer says lawmakers still have several weeks to reach a deal.

The main sticking point is currently the proposed restrictions on politicians and their involvement in the cryptocurrency market. During the week beginning July 20, the White House was expected to finalize the relevant provisions and share the draft with selected Republicans. Democrats, however, say they were excluded from the discussions and did not receive the document.

The bill previously cleared the committee by a vote of 15–9. Senator Kirsten Gillibrand has played an important role in the negotiations. She has proposed banning certain elected officials and their spouses from issuing or promoting their own digital assets, including memecoins.

The disagreement, therefore, is not about whether such restrictions are necessary. Instead, it concerns how the new provisions were drafted and the exclusion of Democrats from the negotiations.