More than 200 crypto organizations sent a letter Monday to Senate Majority Leader John Thune and Minority Leader Charles Schumer, urging quick passage of the CLARITY Act. The coordinated push — led by Stand With Crypto, the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber — includes major names like Coinbase, Circle, Ripple, and Binance.US. The bill aims to set a federal framework for digital assets, clarify who regulates what, and create registration pathways that could keep crypto activity on U.S. soil.
What the CLARITY Act does
The legislation would establish comprehensive federal rules for digital asset markets. It outlines registration requirements for exchanges and stablecoin issuers, protects software developers from certain liabilities, and explicitly defines which agencies oversee different parts of the industry. Supporters say the patchwork of state-by-state rules is driving startups and trading volume abroad. Without a clear federal structure, the letter warns, crypto work will shift offshore, making it harder for U.S. authorities to monitor and prosecute financial crimes.
Senate timeline and shifting odds
The Senate Banking Committee approved its portion of the bill last month after a standoff over a stablecoin yield dispute. Patrick Witt, a lobbyist tracking the bill, said a full Senate vote is expected in the coming weeks, with a possible passage as early as July 4. But not everyone is confident. Galaxy's head of research, Alex Thorn, noted this week that odds of the CLARITY Act passing in 2026 have slipped from 75% to 60%. “The Senate calendar is tight, and progress on outstanding issues like ethics and illicit finance has been slow,” Thorn said.
The ethics hurdle
Two Democrats who voted to advance the bill — Senators Ruben Gallego and Angela Alsobrooks — warned that future support depends on getting ethics guardrails right. They want clear rules for government officials who handle crypto, including restrictions on trading and conflicts of interest. The warning comes as the House passed its own version of the bill last year, meaning any Senate-passed bill would need reconciliation before it hits the President's desk. That extra step could eat up calendar time the industry doesn't have.
What happens if it stalls
The letter's central argument is blunt: a federal framework is better than the current drift. Without it, the industry will keep building outside U.S. borders. That's not just a business problem — it's a surveillance and enforcement problem. The offshore shift makes it tougher for regulators and law enforcement to see what's happening, let alone stop bad actors. For now, the Senate floor is the next test. Thune and Schumer haven't publicly set a date, but the clock is ticking toward the July recess.
