Clarity Act Update: New Draft Merges Committees as Senate Vote Looms

A revised draft of the Clarity Act, which merges key committees to streamline cryptocurrency oversight, is heading to the Senate for a critical vote. This consolidation signals a major push to finalize regulatory frameworks for digital assets, potentially unlocking unprecedented institutional adoption and market stability.

Clarity Act Update Today: Ethics Added, Odds Down, What’s Next in 2026

Senator Cynthia Lummis released a new 616-page draft of the crypto market structure bill on July 22, 2026. This Clarity Act update marks the biggest step yet toward a real federal rulebook for digital assets. 

The new text merges the Senate Banking Committee version with the Senate Agriculture Committee version, and it adds an ethics section for the first time. 

A motion to proceed could come as early as Monday or Tuesday, and a full floor vote may happen the week of August 3. This Clarity Act August Deadline is now the biggest date on the calendar for US crypto regulation.

Clarity Act News Today: Senate Merges Banking and Agriculture Drafts

The US crypto bill, officially knoiwn as H.R. 3633, has moved through several stages already. The House passed its version in July 2025 by a vote of 294-134, a result that showed strong bipartisan support.

The Senate Agriculture Committee advanced its own text earlier in 2026, and the Senate Banking Committee followed in May 2026, passing its version by a 15-9 margin.

This latest Clarity Act update with new draft brings both committee texts into one package. Lawmakers see this merger as the step that finally makes a  senate vote possible before August ends.

New Ethics Provision Added to Crypto Clarity Act for the First Time

The revised bill includes a rule missing from earlier drafts. It bans the President, Vice President, members of Congress, judges, and their spouses from issuing or sponsoring a digital asset for profit while they hold office.

The rule allows safe harbors through blind trusts or full divestment, and it gives the Department of Justice power to enforce penalties. The provision includes a sunset date of January 20, 2029.

Lawmakers backing the ethics language have framed the President's support for it as a notable moment on its own. Supporters of the provision say the President agreed to hold himself to a stricter ethics standard than existing law would have otherwise demanded. 

Several lawmakers publicly thanked him for backing the ban before the vote. 

How the Clarity Act New Draft Splits Oversight Between SEC and CFTC

The crypto market structure bill sorts digital assets into three groups. Mature tokens such as Bitcoin fall under the Commodity Futures Trading Commission as digital commodities, with rules for exchanges, custody, and anti-money laundering compliance.

Assets tied closely to a promoter's efforts stay under the Securities and Exchange Commission, with a lighter capital-raising path capped at $50 million a year and $200 million over a project's life. Payment stablecoins get a separate track, with limits on paying yield to holders.

This structure aims to end years of enforcement-driven confusion and give companies a clear path for listings and custody.

Senator Lummis has also pointed to the bill's national security piece, noting that groups such as North Korea's Lazarus Group exploit gaps in current financial rules. The bill gives the Treasury Department new sanctions authority to freeze suspicious transactions before funds move.

Clarity Act Senate Vote Faces the August Deadline Before Recess Begins

Passing the Senate requires 60 votes to end debate, so at least seven Democrats must join Republican support. Seven have shown some openness already, though several say the ethics language does not go far enough.

Recent estimates on Polymarket put the odds of Clarity Act Passing in 2026 near 38%, significantly down from previous 80-70%. 

If the bill clears the Senate, it still needs to go back to the House for reconciliation before it reaches the President's desk. Missing the August Deadline could push the process into 2027, once midterm politics take over the calendar. 

What’s Next

This Clarity Act update shows how close Congress has come after years of stalled effort. If the Senate acts before recess, the country could finally get one federal framework for digital assets instead of a patchwork of enforcement actions and court rulings.

This article is for informational purposes only and does not constitute financial or investment advice. Crypto markets carry significant risk. Always do your own research before making any investment decisions.