After a Long Slump, Crypto Shows Early Signs of a Comeback

Several people familiar with the discussions told CoinDesk that lawmakers are likely to unveil a revised version of the Digital Asset Market Clarity Act this week, although the legislation still faces significant roadblocks.

Claims that the Clarity Act is no longer viable appear to be overstated. The bill remains under consideration, but the crypto industry is still waiting for lawmakers to resolve several critical issues before it can move toward final approval.

The legislation is being closely watched as one of the most important efforts to establish a comprehensive regulatory framework for digital assets in the United States.

New Draft Could Mark Progress

Sources involved in the negotiations said lawmakers are preparing a new draft that combines the versions of the Clarity Act previously advanced by the Senate Banking and Agriculture Committees.

The revised legislation comes after members of both committees worked to reconcile differences between their proposals and create a unified version of the bill.

However, while the release of a new draft would signal movement, it does not necessarily mean the legislation is ready for a vote. Several major disagreements remain unresolved, and those issues could determine whether the bill gains enough bipartisan backing.

Key Disagreements Remain

According to sources, the updated draft could contain around 70 additional pages of provisions while incorporating elements from the two committee-approved versions.

The latest version is not expected to include an ethics provision or fully settle some of the most contentious issues surrounding the legislation. As a result, the bill may still require further negotiations before reaching the Senate floor.

The schedule is becoming increasingly tight, with lawmakers facing a limited window to push the bill through Congress and send it to the president before the 2026 legislative calendar becomes more challenging.

Senate Vote Depends on Bipartisan Support

Senate Majority Leader John Thune previously indicated that he was willing to bring the bill up for a vote in July. Reports suggest lawmakers could consider the legislation during the weeks of July 20 or July 27.

To clear the Senate, supporters will likely need at least 60 votes. That means several Democrats would need to support the bill, while the required number could increase if some Republicans vote against it or are unable to participate.

Crypto advocacy groups are expected to track lawmakers’ positions closely, while industry organizations will likely emphasize the large financial resources available through crypto-focused political action committees.

The timing also creates political challenges. With the 2026 midterm elections approaching on Nov. 3, lawmakers will soon return to their districts and face pressure from voters and party supporters.

Ethics Provision Remains a Major Issue

Donald Trump could play an important role in the legislation’s future, particularly regarding whether lawmakers can agree on an ethics framework.

One source said that if the upcoming draft fails to include an ethics provision or even a placeholder for future negotiations, it could make it harder to secure the bipartisan support needed for passage.

Several sources said the White House has been less involved in the talks recently compared with earlier in the summer. Another source suggested officials may simply be waiting for lawmakers to resolve other outstanding issues before becoming more active.

CBDC Debate May Have Been Removed as an Obstacle

Another potential point of conflict appears to have eased. Industry participants had previously worried that lawmakers could attempt to add restrictions on a U.S. central bank digital currency to the Clarity Act, further complicating negotiations.

However, a separate housing bill includes a provision preventing the Federal Reserve System from issuing a CBDC for at least four years.

If enacted, that measure would postpone the CBDC debate until 2030 and allow lawmakers to focus on the remaining issues related to crypto market regulation.

Upcoming Crypto Policy Calendar

Tuesday

• Fed Chair Kevin Warsh is scheduled to testify before the House Financial Services Committee.

Wednesday

• The Senate Select Committee on Intelligence will hold a hearing on Jay Clayton’s nomination for Director of National Intelligence.
• Kevin Warsh will testify before the Senate Banking Committee.
• The House Financial Services Committee will hold a hearing on the Consumer Financial Protection Bureau.

Thursday

• The Senate Banking Committee will conduct a hearing focused on the Consumer Financial Protection Bureau.

Friday

• The House Financial Services Committee’s digital assets subcommittee will hold a hearing in New York focused on the Clarity Act.

The upcoming draft will provide an important signal on whether lawmakers are moving closer to a bipartisan agreement or whether unresolved disagreements will continue delaying the crypto market structure bill.