CLARITY Act Must Pass Senate Within Two Weeks Before August Recess, Grayscale Warns

According to Grayscale Investments, the U.S. CLARITY Act must clear the Senate within two weeks before the August recess, or it will likely be sidelined by midterm election politics. On July 22, Senator Cynthia Lummis released updated legislative text integrating proposals from the Senate Banking and Agriculture committees to clarify oversight division between the SEC and CFTC.

Ethics restrictions covering public officials and their families remain the primary obstacle to bipartisan agreement. Senate Democrats have called for stronger conflict-of-interest provisions, while Republicans proposed more limited restrictions on officials who issue or sponsor digital assets during office. Industry supporters including Coinbase argue that enacted legislation would replace regulatory uncertainty with a comprehensive statutory framework, benefiting developers, investors, and market participants.