Key Highlights
- Senate Republicans plan to release the CLARITY Act text following a meeting with President Donald Trump.
- Senate Democrats oppose the current draft, citing weak ethics provisions and insufficient consumer protections.
- Sen. Bernie Moreno and Sen. Cynthia Lummis aim to advance the bill before the August congressional recess.
Senate Republicans are reportedly preparing to release the updated text of the cryptocurrency market structure bill, known as the CLARITY Act, shortly after a meeting with President Donald Trump on Thursday afternoon. However, the move comes without support from Senate Democrats, casting doubt on the legislation’s near-term prospects.
According to a Politico report, Sen. Bernie Moreno (R-Ohio) told reporters that the text would be released following the meeting. Democratic senators are not expected to attend, and several have already stated they will not support the current version of the bill.
Ethics divide stalls progress
Negotiations on the CLARITY Act have continued for nearly a year. A central sticking point remains an ethics provision intended to address concerns related to President Trump’s business interests in the crypto industry. Democrats have insisted on stronger ethics language as a condition for their support, which is required to advance the bill in the Senate.
“We’ll do that right after the meeting,” Moreno said. “You guys have a lot of reading to do.”
Sen. Cynthia Lummis (R-Wyo.), a leading proponent of the legislation, expressed hope that draft text would be released after the discussion with Trump. Moreno emphasized that it is time for a vote, though the president requested a briefing.
One of Moreno’s goals is to secure a vote before the August recess. Democrats have pushed back strongly. Sen. Ruben Gallego (D-Ariz.), a key negotiator, said the version being presented lacks meaningful ethics reforms.
“They’re taking a version of the text to the president with their ethics provisions, not with anything that we agree to as Democrats,” Gallego stated. He described the Republican ethics language as “very weak,” arguing it provides too much latitude and falls short on consumer protections.
Democrats remain on the sidelines
A Democratic Senate aide, speaking anonymously, confirmed that the Republican plan is weaker than what Democrats would accept and that they have not agreed to the text being shown to the White House.
Sen. Cory Booker (D-N.J.), involved in the CFTC-related portions of the bill, indicated that negotiations are still ongoing and expressed hope that nothing would be released prematurely. “The only way to get this done is a bipartisan pathway,” he said.
Trump meeting seen as a key step
Thursday’s meeting with President Trump is being viewed as an attempt to build momentum. Yet the absence of agreement on ethics provisions highlights deep partisan divisions over how to regulate the rapidly growing crypto sector while addressing potential conflicts of interest.
As the text release approaches, market participants and industry observers are closely watching developments. Prediction markets currently assign roughly a 41% probability to the bill’s passage, reflecting uncertainty over the legislative timeline.
The coming days will determine whether Republicans move forward with a party-line approach or continue seeking a bipartisan compromise before the August recess. The House Financial Services Committee’s Digital Assets Subcommittee is also scheduled to hold a field hearing on the CLARITY Act on July 17. For now, the bill’s path forward remains uncertain amid ongoing disagreements over ethics provisions and consumer safeguards.
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