The Digital Asset Market Clarity Act remains stalled in the U.S. Senate after lawmakers missed an informal July 4, 2026, signing target. The Senate filed no cloture motion and scheduled no floor vote before the deadline, leaving the legislation at Calendar No. 423. The bill already cleared the House with bipartisan support and advanced through the Senate Banking Committee.
Still, it must secure Senate approval, reconcile separate committee versions, and receive the president's signature before becoming law. With the Senate returning on July 13 and the August recess approaching, time continues to narrow for the legislation.
The House approved the CLARITY Act on July 17, 2025, before it advanced through the Senate Banking Committee in May 2026.
The legislation now awaits Senate floor consideration. Senate Majority Leader John Thune has not scheduled debate, while lawmakers have not filed the cloture motion needed to begin the final legislative process.
Republicans control 53 Senate seats. Senators Josh Hawley and Rand Paul oppose the bill, while Democratic Senators Ruben Gallego and Angela Alsobrooks supported it during committee consideration with conditions attached to a future floor vote. Supporters still need seven to nine Democratic votes to reach the 60-vote threshold required to overcome a filibuster.
Meanwhile, ethics concerns continue to shape negotiations. President Donald Trump's July 1, 2026 financial disclosure listed about $1.4 billion in cryptocurrency-related income during 2025.
The filing included roughly $635 million in royalties tied to the $TRUMP meme coin and more than $500 million from World Liberty Financial token sales. The White House opposes language targeting the president's personal cryptocurrency holdings.
Earlier, Senator Chris Van Hollen proposed an ethics amendment. The Senate Banking Committee rejected it by an 11-13 vote. Senator Kirsten Gillibrand has also stated that enforceable rules covering government officials' crypto holdings remain necessary before she supports the legislation.
Beyond ethics, Section 604 continues to divide lawmakers and outside groups. The provision would exempt non-custodial software developers from money-transmitter registration requirements.
The National District Attorneys' Association argues the language could complicate cryptocurrency-related criminal investigations. At the same time, another dispute centers on stablecoin yield provisions within the bill.
According to the American Bankers Association, the current language creates a potential loophole for interest-equivalent yields beyond limits established under the GENIUS Act. Coinbase currently earns about $1.35 billion annually through USDC rewards revenue, making the issue a significant part of the debate.
Read More: CLARITY Act Senate Vote Faces Ethics Test After Trump Crypto Income
Industry organizations led by Stand With Crypto continue urging Senate leaders to preserve the developer protections and move the legislation to the floor. Meanwhile, Bitcoin traded at $63,046 at publication, according to CoinPaprika data from July 7, 2026. The price reflected a 6% weekly gain while remaining about 50% below its October 2025 record high of $126,173.
The Senate returned from recess on July 13, leaving about three weeks before the August 7 break. Brian Gardner, a policy strategist at Stifel, wrote that the bill likely needs Senate approval before the end of July to maintain momentum.
Beacon Policy Advisors also warned that missing that window could end the legislation's path in 2026. Reconciliation between the Senate Banking Committee and Senate Agriculture Committee versions also remains pending before the bill can reach the president's desk.
The CLARITY Act remains stalled in the Senate after missing its July signing target, with ethics concerns, bipartisan vote counts, and policy disputes still unresolved. Lawmakers now face a limited window before the August recess to advance the bill through the remaining legislative steps.