The Crypto Clarity Act, a bill that passed the House last year with bipartisan support, is likely to be delayed again as the Senate prioritizes other legislation ahead of the August recess. A new draft circulated in July includes a ban on government officials and their families from issuing or promoting crypto, but the measure has not gained enough traction to reach a floor vote.
Why the bill is stuck
Senator Elizabeth Warren (D-MA) said that 'more people in the Senate are beginning to question crypto’s electoral invincibility,' suggesting growing skepticism among Democrats. She argued the bill would allow criminals and cartels to move money and enrich President Trump, despite the new ethics language that prohibits government promotion of crypto. Pro-crypto Republicans, including Senator Cynthia Lummis (R-WY), have accused Democrats of deliberately stalling the bill.
The ethics fight
The July draft addresses concerns about conflicts of interest by barring officials and their families from issuing or promoting digital assets. Senators Thom Tillis (R) and Ruben Gallego (D) are working together to draft additional ethics language. The banking lobby has raised concerns over stablecoin yield, fearing a loss of deposit base if crypto exchanges offer attractive rewards. That pushback has added another layer of complexity to the negotiations.
Who's backing it
Top Wall Street firms including Fidelity and Goldman Sachs, as well as law enforcement organizations, have backed the bill in its current form. Coinbase's Chief Policy Officer Faryar Shirzad expressed optimism, noting bipartisan work on the legislation. The support from both financial heavyweights and law enforcement gives the bill a broad coalition, but it hasn't been enough to break the Senate logjam.
What happens next
With the August recess approaching, lawmakers have limited time to advance the bill before leaving Washington. The Senate is expected to focus on must-pass spending measures and other priorities, pushing the Crypto Clarity Act to the fall. Whether the new ethics language can win over enough Democrats remains an open question.
