CLARITY Act Reaches Senate Floor as Ethics Dispute Splits Parties

The CLARITY Act is advancing through a turbulent Senate gauntlet, with shifting passage odds, mounting opposition, and hard recess deadlines defining its path to crypto market structure law.

Senate Majority Leader John Thune announced plans to bring the CLARITY Act to a floor vote as early as next week, even without bipartisan agreement, while Republicans released an updated draft banning federal officials including the president from issuing or holding crypto tokens until 2029 and adding developer protections. Democrats, led publicly by Senator Warren, rejected the ethics provisions as insufficient, with key Democratic lawmakers stating the bill 'falls short,' and Polymarket odds for passage dropped to approximately 38%. Supporters including Ripple, Coinbase CEO Brian Armstrong, Senator Lummis, and a16z publicly backed the bill, while crypto lobbyists ramped up outreach to Senate Democrats.