The CLARITY Act, the sweeping crypto market structure bill, cleared the Senate Banking Committee last Thursday in a 15-9 bipartisan vote. Galaxy Research promptly raised its estimate of the bill becoming law in 2026 to 75%. But the legislation now enters a delicate phase — merging two committee versions, then finding floor time before the August recess. And the biggest unresolved issue is ethics language, a fight that could stall everything.
The ethics hang-up
The vote was bipartisan: all Republicans plus Democrats Ruben Gallego and Angela Alsobrooks voted to advance. But both Democrats warned their committee votes did not guarantee floor support. The sticking point is clear: restrictions on senior government officials and their family members profiting from, promoting, or holding digital assets while federal crypto rules are being written. Senator Elizabeth Warren argued the bill doesn't address Trump Administration's crypto-related corruption. Without stronger ethics language, Democratic leaders may not bring enough votes to the floor.
Calendar crunch
The White House wants a faster schedule — targeting congressional passage by July 4, 2026. That's aggressive. Congress has only a limited number of working weeks before the August recess. Midterm election years make major legislation harder to pass as the calendar tightens. Galaxy's projected timeline lays out the pressure: Senate reconciliation in early June, Senate floor consideration around mid-June, final Senate passage by end of June. Then House-Senate negotiations in July, final House passage in late July. One slip and the window closes.
Other sticking points
Ethics isn't the only fight. Disputes remain over decentralized finance (DeFi) provisions and the Blockchain Regulatory Certainty Act. Law enforcement agencies have raised oversight concerns about decentralized protocols — they want visibility into activity that can't be easily shut down. The combination of these issues means the merged committee text will be a careful compromise. And any change risks losing votes.
What happens next
The Senate Banking Committee text must now be combined with a version advanced by the Senate Agriculture Committee. Once that's done, Senate leaders can bring the bill to the floor. The next concrete milestone is Senate reconciliation in early June. If the ethics language isn't resolved by then, the July 4 target — and the broader August 3 signing date that President Donald Trump could hit — starts slipping. The clock is ticking.
