Crypto CLARITY Act Draft Faces Senate Resistance Over Ethics Concerns Amid Democratic Opposition

According to recent reports, the draft Crypto CLARITY Act is expected to be released this week but lacks broad Senate Democratic support due to unresolved ethics disputes, leaving its passage uncertain despite renewed White House advocacy.

The legislation, formally known as the Digital Asset Market Clarity Act, aims to establish a federal framework clarifying when digital assets fall under securities or commodities rules and defining regulatory roles for the SEC and CFTC. Democrats have focused heavily on whether the bill should include conflict-of-interest provisions covering President Trump and federal officials, while Republicans argue the market-structure framework should not be derailed by political disputes. Prediction markets currently give the bill approximately 41% odds of passing in 2026, down from higher levels earlier in the year, reflecting doubts that negotiators can resolve ethics disputes before the August recess.