Senate negotiations over the CLARITY Act are reportedly continuing behind closed doors as lawmakers work toward a possible floor vote after Congress returns from its July 4 recess.
According to a report from Crypto In America, with little more than a week before the Senate adjourns, bipartisan discussions involving members of the Senate Banking and Agriculture Committees are focused on resolving remaining issues that could determine whether the digital asset market structure bill advances later this summer.
Lawmakers work to resolve outstanding issues
Senators from both committees are reportedly meeting on Thursday to discuss unresolved provisions in the legislation. Additionally, Acting Attorney General Todd Blanche is scheduled to meet with law enforcement officials as the administration seeks support for the Blockchain Regulatory Certainty Act (BRCA), one of the most closely watched provisions included in the broader CLARITY Act package.
The BRCA aims to clarify that non-custodial software developers would not be held liable for how third parties use their software unless they knowingly intended to facilitate illegal activity.
Law enforcement organizations have expressed concerns that the language could limit their ability to investigate illicit on-chain activity, making their feedback important as several Democratic senators continue reviewing the proposal.
Sen. Hagerty says post-recess vote is within reach
The latest move comes just a day after U.S. Senator Bill Hagerty said the legislation would provide the regulatory certainty needed to expand the digital asset industry in the United States.
Speaking with Fox Business, Hagerty described the bill as a framework that would unlock broader use cases for digital assets beyond payments, drawing comparisons to the recently advanced GENIUS Act. He added that meaningful progress on the CLARITY Act is expected after the July 4 congressional recess, with lawmakers aiming to advance the legislation before the end of July to maintain the country’s innovation edge.
White House hosts law enforcement talks on BRCA
Efforts to advance the CLARITY Act have also included direct engagement with law enforcement groups. White House crypto adviser Patrick Witt and the White House Crypto Council hosted a meeting last Wednesday at the Eisenhower Executive Office Building with representatives from the Treasury Department, FinCEN, the Department of Justice, congressional staff, and several national law enforcement organizations.
The nearly 90-minute discussion focused on the Blockchain Regulatory Certainty Act (BRCA), including how its provisions for non-custodial software developers could affect crypto-related investigations and enforcement. Participants also discussed potential ways to strengthen reporting requirements and investigative tools aimed at combating illicit activity involving digital assets.
Narrow legislative window raises pressure
Supporters of the bill argue that delaying action beyond the summer could significantly reduce its chances of becoming law this Congress. Rep. Dusty Johnson, chairman of the House Agriculture Committee’s Digital Assets Subcommittee, warned that lawmakers should aim to complete the process before August rather than relying on a post-election lame-duck session.
The CLARITY Act is designed to establish a comprehensive regulatory framework for digital assets by defining the respective roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while providing greater legal clarity for crypto market participants.
With bipartisan negotiations continuing and outside advocacy intensifying, supporters are aiming to position the legislation for Senate consideration when lawmakers return after the July recess.
Also Read: US Moves to Tighten Stablecoin ID Rules Under GENIUS Act
