Senate negotiators are back at the table on the CLARITY Act, but progress is being slowed less by hardline policy fights than by a basic problem: many senators still don’t fully understand what’s in the bill.
Senate Agriculture Committee Chair John Boozman told reporters after a June 18 meeting — reported by Punchbowl News — that while discussions are moving forward, “most members do not fully understand the bill.” Because much of the CLARITY Act falls under the Agriculture Committee’s jurisdiction, that panel is central to shepherding the measure toward a full Senate vote. Boozman said that the knowledge gap among lawmakers remains one of the biggest obstacles to building broader support.
Negotiators are under time pressure. Leaders want to resolve outstanding issues before lawmakers break for the August recess, and a series of last-minute meetings are ongoing to work through contested provisions of the digital-asset market-structure legislation.
Inside baseball on the disagreements: industry and some Capitol Hill observers say the split may not be as wide as it looks. David Nage, managing director and portfolio manager at Arca, told crypto.news that conversations with Senate offices left him with the impression that lawmakers and industry are roughly 80%–85% aligned on the bill’s core elements. According to Nage, debate has moved away from stablecoin yield restrictions — which drew high-profile criticism from figures like JPMorgan CEO Jamie Dimon — and toward ethics and conflict-of-interest rules for government officials engaged in crypto-related business.
Nage said the remaining disputes are largely about how to craft and enforce those ethics rules, not about whether they should exist. In his base case, negotiators would agree on the ethics language and reconcile competing proposals in the coming weeks, positioning the bill to reach the Senate floor after Congress returns on July 13.
But timing is still uncertain. Senator Bill Hagerty told FOX Business he hopes the Senate can finish work before the July 4 recess, saying regulatory clarity would help the U.S. crypto industry grow domestically. White House crypto advisor Patrick Witt has also expressed optimism about an Independence Day timeline. Others expect a longer road: Senator Cynthia Lummis has pushed back expectations, suggesting a floor vote before the August recess is more likely than passage ahead of July 4. Lummis also highlighted that the bill includes $150 million aimed at combating illicit cryptocurrency activity and warned that failure to act in this window could push meaningful reform as far out as 2030.
Supporters say the CLARITY Act would clarify the respective responsibilities of the SEC and CFTC and set compliance standards for digital-asset firms — a potential milestone for U.S. crypto regulation. As negotiations continue, the focus for many appears to be education and compromise rather than headline-grabbing policy fights: lawmakers need to get up to speed on the details and agree on enforcement and ethics language before a final push to the floor.
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