US Senate committees are negotiating a unified draft of the Clarity Act to establish a digital asset regulatory framework, but passage remains uncertain as Democratic support has not been secured, sources familiar with the negotiations told CoinDesk on the 10th (local time). The Banking Committee and Agriculture Committee are consolidating bills each passed earlier this year, adding over 70 pages to address consumer protections and other Democratic priorities. Despite revisions, negotiators report insufficient Democratic backing for the 60 votes required for Senate passage, with unresolved disputes over ethics provisions for high officials holding digital asset interests threatening to block final approval.
Senate Committees Add 70 Pages to Unified Clarity Act Draft
The unified draft incorporates more than 70 additional pages compared to the original bills, reflecting consumer protection measures Democrats requested, according to sources cited by CoinDesk. Both committees went beyond simply merging their earlier legislation, conducting additional negotiations focused on unresolved issues. The Agriculture Committee has been particularly active in the negotiation process, sources said. Congressional staffers told CoinDesk that despite recent amendments addressing Democratic concerns, the draft has not yet secured the necessary level of Democratic support.
Ethics Provisions for High Officials Remain Unresolved
The unified bill has not finalized its position on restricting digital asset business interests for high-ranking officials including the president, negotiation sources said. Several lawmakers have indicated they will not support the final bill if a compromise on ethics rules is not reached. Negotiators discussed options including allowing state attorneys general to file lawsuits for ethics violations, but sources familiar with the talks described progress as "very slow."
White House Reports Democrats Have Not Nominated SEC and CFTC Commissioners
Remaining points of contention include the division of authority between federal and state governments, as well as appointments to the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The White House sent a letter to Senate leadership on the 10th stating that Democrats have not yet nominated minority commissioner candidates for the SEC and CFTC, CoinDesk reported.
Supporters Expect Floor Vote Week of July 20
Bill supporters expect the unified legislation to reach the Senate floor during the week beginning July 20, but negotiation sources say a significant number of issues must be resolved before a vote. Senate passage requires 60 votes, making Democratic cooperation essential. Even Democratic senators who voted in favor at the Banking Committee stage have warned they may not support the final version if key demands such as ethics provisions are not included, sources said.
FAQ
What are the Senate Banking and Agriculture Committees negotiating?
The committees are negotiating a unified draft of the Clarity Act, which would establish a regulatory framework for digital assets in the United States. The draft consolidates bills each committee passed earlier this year and adds over 70 pages addressing consumer protections and other provisions.
Why is passage of the unified Clarity Act uncertain?
Passage remains uncertain because the bill has not secured sufficient Democratic support despite revisions addressing Democratic concerns. The Senate requires 60 votes for passage, making bipartisan cooperation essential. Unresolved disputes over ethics provisions restricting high officials' digital asset interests are a major obstacle, with several lawmakers indicating they will not support the bill without a compromise on ethics rules.
