Over 200 crypto firms urge Senate to pass CLARITY Act before midterms
In brief
- Over 200 crypto firms signed a letter urging Senate leaders to bring CLARITY Act to a vote without delay.
- CLARITY Act defines SEC and CFTC crypto regulation after months of bipartisan Banking Committee work.
- Galaxy Digital cut 2026 passage odds to 60% from 75%, citing need to pass before August recess.
- Lawmakers flagged ethics and illicit-finance amendments as necessary to secure 60 votes for passage.
Bill stalls amid competing demands
The Senate Banking Committee voted last month to pass the CLARITY Act after months of bipartisan work. Yet the bill has stalled multiple times in the Senate this year as lawmakers and lobbyists disagreed on its provisions. The crypto industry lobbied to include protections for developers of decentralized crypto platforms, while banking groups pushed for the bill to include a ban on platforms offering stablecoin yields.
The Senate has yet to schedule floor time for the bill ahead of the midterm elections in November. The timing matters. Galaxy Digital said on Friday that it lowered its odds of the bill passing in 2026 to 60% from 75%, citing the need to pass before the August recess in late July.
Amendments block path forward
Lawmakers have flagged the bill needs amendments around ethics and policing illicit finance if it is to receive support for the at least 60 votes required. Senator Cynthia Lummis, who has worked to advance the bill, told CNBC on Wednesday that lawmakers are addressing these issues. Both the Senate Agriculture and Banking Committees passed their versions of the bill concerning commodities and securities laws, setting up a potential reconciliation step.
The crypto lobby's letter framed the stakes in global terms. The groups argued that digital asset markets are central to the future of financial infrastructure, and the question is whether that future will be built in the United States under U.S. law and oversight, or continue moving to offshore jurisdictions with less transparency and weaker consumer protections.
Frequently asked questions
What is the CLARITY Act and what would it do?
The CLARITY Act would outline how the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) regulate digital assets. It passed the Senate Banking Committee after months of bipartisan work but has stalled in the full Senate as lawmakers and lobbyists disagreed on provisions around stablecoin yields, developer protections, ethics, and illicit finance.
Why are crypto companies pushing for a Senate vote now?
Crypto industry groups want the Senate to schedule a floor vote before the November midterm elections and August recess. Galaxy Digital lowered its odds of passage in 2026 to 60% from 75%, signaling that window is closing. Lawmakers are still working to resolve amendments around ethics and illicit finance to reach the 60 votes needed.
Which organizations signed the letter pushing for the bill?
More than 200 crypto companies and organizations signed the letter, coordinated by four major lobby groups: Stand With Crypto, The Digital Chamber, the Blockchain Association, and the Crypto Council for Innovation. The letter was addressed to Senate Majority Leader John Thune and Minority Leader Chuck Schumer.
