The Clarity Act is close to a Senate vote, but a last-minute fight over who enforces the rules — and a side debate about President Trump's crypto holdings — is keeping the bill from crossing the finish line. Senator Kevin Cramer said this week the measure is 'almost there,' while Treasury Secretary Scott Bessent put it at the '1-yard line' and urged Congress to pass it before the August recess.
The enforcement holdup
There's broad agreement that the Department of Justice would be the primary enforcer of the new crypto rules. But Democrats had pushed for state attorneys general to also have enforcement power. That's where things get messy. Senator Lummis proposed language that would let state AGs sue exchanges that list tokens issued by public officials — a direct tie to President Trump's own crypto ventures. The proposal hasn't gained traction, and the enforcement question remains unresolved.
What the bill does
The Clarity Act would split oversight of digital assets between the SEC and the CFTC, set disclosure rules for certain tokens, and extend anti-money laundering and sanctions rules to crypto exchanges. The House passed its version a year ago. The Senate Banking Committee advanced its version in a 15-9 vote, with two Democrats crossing over. Majority Leader John Thune wants to bring the bill to the floor before the August recess. Cramer said the Senate has 'a couple more weeks' but not this week.
The clock and the odds
The CFTC chair called the bill 'so close.' But Galaxy Research cut its passage odds to 50-50. The bill is competing for floor time with a continuing resolution and a reconciliation package. President Trump has pushed for the crypto measure, warning about competition from China. Cramer noted another sticking point: the definition of securities intermediaries. Industry prefers a definition based on decentralization, but that language isn't settled yet.
Thune's target is the August recess. Whether the Clarity Act gets there depends on whether lawmakers can untangle the enforcement knot — and the Trump-linked ethics fight — in the next few weeks.
