Crypto Advocates Push CLARITY Act to Senate Floor Amid Ethics Concerns

Three prominent US crypto advocacy groups - the Crypto Council for Innovation, the Digital Chamber, and the Blockchain Association - have jointly urged Senate leaders to bring the Digital Asset Market Clarity (CLARITY) Act to a floor vote before the August recess. The push comes as the bill has cleared the Senate banking and agriculture committees but faces uncertainty over securing the 60 votes needed for passage.

The groups argue that the legislation remains a rare chance to establish a clearer federal framework for digital assets, which is crucial for non-custodial systems and consumer protections. Industry leaders like Coinbase CEO Brian Armstrong and 1inch's chief legal officer Orest Gavryliak have also emphasized the need for a workable framework, especially for decentralized protocols.

The ethics provisions in the GOP's market structure text are causing tension between Republicans and Democrats. While several Republicans have signaled support for the bill, some Democratic lawmakers have expressed concerns that the proposed rules do not go far enough to address corruption risks.

According to market-implied polling via Kalshi, there is a roughly 40.3% chance of passage before the Senate's August break. If the bill fails to secure floor consideration by then, it may be delayed until after the midterms in 2026, which could complicate negotiations and affect compliance obligations for non-custodial systems.