White House Targets July 4 Passage of CLARITY Act as It Presses Congress

The White House is pressing to accelerate passage of the CLARITY Act, legislation that would establish a market-structure framework for the US digital-asset industry, with a goal of clearing Congress by July 4.

Patrick Witt, executive director of the White House's digital assets advisory council, said at the Consensus conference in Miami on May 6 that the administration is aiming to pass the bill by July 4, The Block reported.

If the Senate advances the legislation in June, the House would still have enough time to act, he said. The House already passed related legislation last year, leaving lawmakers to reconcile it with the Senate version.

The measure aims to create the first comprehensive federal regulatory framework for the crypto industry, including by delineating the authority of the Commodity Futures Trading Commission and the Securities and Exchange Commission.

A recent compromise brought some progress on one of the biggest sticking points: whether stablecoin issuers can pay interest. Banks, however, still view the proposal as insufficient.

Another emerging issue is an ethics provision. Some Democratic lawmakers are demanding conflict-of-interest rules, citing President Donald Trump and his family's ties to crypto businesses.

Witt said rules aimed at a specific individual or family would be unacceptable. He added that talks with Democrats have been advancing and that he is optimistic a compromise can be reached.

Meanwhile, the Senate Banking Committee could begin procedures to revise the bill and bring it to a vote as early as next week.