CLARITY Act Update: White House Sets July 4 Deadline as Senate Moves Toward Vote

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The White House is pushing to pass the Digital Asset Market Clarity Act before July 4, according to Patrick Witt, the administration’s digital assets adviser.

Witt said that the Senate Banking Committee is expected to advance the bill this month and that most major disputes have been resolved. On the stablecoin yield question, which had been one of the most contested issues, he said a compromise has been reached though both the crypto industry and banks remain unhappy with the outcome.

“I’m very bullish, cautiously optimistic,” Witt said about the bill’s prospects.

Senate Banking Committee Chairman Tim Scott described the bill as “in the red zone.” CFTC Chair Mike Selig said he is hopeful for a July 4 signing.

What the Bill Would Do

The CLARITY Act would establish clear boundaries between SEC and CFTC jurisdiction over digital assets, set rules for stablecoin yields, create a regulatory framework for crypto exchanges and institutions, and reduce the use of enforcement actions as the primary tool of crypto oversight in the United States.

Gillibrand Sets Conditions

Senator Kirsten Gillibrand, the lead Democratic negotiator on the bill, said at the Consensus 2026 conference on Wednesday that she will not support the legislation without provisions banning crypto insider trading by lawmakers and government officials.

Gillibrand, who wrote the 2012 STOCK Act barring congressional insider trading in equities, named three issues that must be resolved before the Senate Banking Committee proceeds to markup: ethics rules, consumer protections, and safeguards against illicit finance and terrorism financing.

“It can get done by August if we’re lucky,” she said.

Many Democrats are concerned about potential conflicts of interest involving the Trump family. Bloomberg has estimated the family has earned at least $1.4 billion from the crypto industry. The White House said it is negotiating ethics rules that would apply to all government officials broadly rather than targeting specific individuals or families.

Bitcoin Reserve Update

Witt said updates on the proposed US Strategic Bitcoin Reserve are expected in the coming weeks. The administration is currently auditing and centralising crypto assets held by federal agencies following President Trump’s executive order, with details on the reserve’s structure to follow.

Key Date to Watch

The Senate Banking Committee markup in May is the most critical near-term milestone. If the bill clears committee, a July 4 deadline remains achievable. If it stalls, passage is more likely to slip to August at the earliest.