U.S. Senate Resumes Clarity Act Negotiations Next Week With Seven-Week Window Before August Recess

According to The Block, the U.S. Senate will resume negotiations on the Clarity Act next week following the congressional recess, aiming to advance the bill before the August break and midterm elections. The House passed its version last year, and the Senate Banking and Agriculture Committees have each approved their respective versions. Legislative staffers are merging the texts, with a new version expected as early as next week.

The time window is narrow, with only the remainder of July and the first week of August available to advance the legislation. The merged text, now 70 pages, has incorporated consumer protection provisions at Democratic request. Key obstacles include a safe harbor clause for non-custodial developers, which the crypto industry supports but enforcement agencies and Catholic leaders oppose, and ethics provisions requiring limits on presidential and congressional members' digital asset profits.