U.S. Senate Could Vote on Crypto Market Structure Bill Before August Recess

TLDR

• Senator Gillibrand says the CLARITY Act needs an ethics provision before any Senate vote
• The ethics rule would ban senior government officials, including the president, from holding crypto interests
• A vote could happen before August 10 if key issues are resolved in the next week
• The Senate Banking Committee has not yet rescheduled a markup hearing postponed in January
• Prediction markets give the bill a 65% chance of becoming law by end of 2026

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Senator Kirsten Gillibrand told attendees at the Consensus conference in Miami on Wednesday that the Digital Asset Market Clarity Act cannot move forward in the Senate without an ethics provision banning senior government officials from personal financial ties to the crypto industry.

The New York Democrat has been one of the key negotiators on bipartisan crypto legislation for several years. She said the provision is aimed at preventing members of Congress, senior administration officials, and the president and vice president from profiting from crypto ties due to their positions.

While she did not name President Donald Trump directly, his connections to the crypto industry have drawn scrutiny. These include the launch of a Trump-branded memecoin, his family’s involvement in crypto firm World Liberty Financial, and other industry dealings.

White House officials have denied that Trump’s business interests represent a conflict of interest. They have also said they will not support legislation that specifically targets him.

What Needs to Happen Before a Vote

Gillibrand said negotiators are also working through consumer protection and illicit finance provisions. She said the ethics issue needs to be resolved within the next week to secure bipartisan approval at a Senate Banking Committee hearing expected as soon as next week.

If those issues are addressed and the current draft is combined with the version already passed in the Senate Agriculture Committee, Gillibrand said a floor vote could happen before the August recess, which begins August 10.

Last week, senators on the banking committee announced a deal on stablecoin yield. That deal was seen as a step forward, but it did not address the ethics language around public officials.

Ripple CEO Brad Garlinghouse said Tuesday that lawmakers likely have a two-week window to act before midterm election dynamics complicate the process.

Where the Bill Stands Now

The Senate Banking Committee postponed a markup hearing on the bill in January. As of Wednesday, it had not been rescheduled.

Coinbase CEO Brian Armstrong said at the time of the postponement that his exchange could not support the legislation as written. Other crypto companies also raised concerns about provisions related to decentralized finance, stablecoins, and tokenized equities.

Summer Mersinger, CEO of the Blockchain Association and former Commodity Futures Trading Commission commissioner, said at Consensus that while the current window is important, it may not be the last chance for the bill.

On prediction markets platform Polymarket, traders currently give the CLARITY Act a 65% chance of being signed into law by the end of 2026. On Kalshi, traders put the odds of it passing before August at 49%.

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