CLARITY Act Passage by July 4 Seen as Unrealistic

Doubts are growing over whether the CLARITY Act, a U.S. digital-asset market structure bill, can pass before Independence Day on July 4.

Eleanor Terrett, host of Crypto in America, wrote on X on June 14 that enacting the CLARITY Act by July 4 would require Republicans and Democrats to reach agreement on ethics provisions acceptable to both parties.

Lawmakers would also need to resolve issues related to the Agriculture Committee bill, merge the related measures and secure 60 votes in the Senate, she wrote. The legislation would then still need to clear both chambers of Congress. With only two weeks left, that timeline is realistically impossible.

The CLARITY Act sets standards for determining whether digital assets should be classified as securities or commodities and clarifies the oversight authority of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.

Negotiations have recently run into trouble as Democrats demand stronger ethics provisions over conflict-of-interest concerns tied to cryptocurrency businesses involving President Donald Trump's family.