Trump-Backed CLARITY Act Text Set to Drop With No Democrats on Board, and It Needs 7 of Them

Senate Republicans are set to release the long-awaited updated text of the CLARITY Act on July 17, immediately following a White House meeting with President Donald Trump. However, the bill faces significant hurdles as Senate Democrats have signaled they will not support the current draft, citing insufficient ethics language.

Sen. Bernie Moreno (R-Ohio) confirmed the timing, stating that the text would be released right after the meeting. The release caps nearly a year of negotiations, though the bill has already missed the July 4 target set by the president.

The central sticking point is an ethics provision aimed at addressing concerns over President Trump’s business interests in the crypto industry. Democrats insist on stronger language to ensure consumer protection and transparency. Sen. Ruben Gallego (D-Ariz.), a lead Democratic negotiator, described the Republican ethics language as “very weak” and argued it provides excessive latitude. Sen. Cory Booker (D-N.J.) emphasized that a bipartisan pathway is essential.

The legislation requires 60 votes to clear the Senate, but Republicans hold only 53 seats, meaning at least seven Democrats must cross over for the bill to pass. Senate leaders aim for a floor vote during the week of July 20, with the August 8 recess seen as the last realistic deadline this year.

Bipartisan support existed earlier, as the Senate Banking Committee advanced the bill in a 15-9 vote on May 14, with Democrats Gallego and Angela Alsobrooks joining Republicans. That support has since frayed over the ethics dispute, despite industry pressure. Coinbase Chief Policy Officer Faryar Shirzad called the CLARITY Act “a dramatic advance in consumer protection and market integrity.”

Prediction markets reflect uncertainty. Polymarket odds on the CLARITY Act becoming law in 2026 climbed to 45% on July 17, rebounding from a record low of 24% four days earlier.

If the Senate passes an amended version, the House must align on the final text before the bill can reach the president’s desk. The House Financial Services Committee’s Digital Assets Subcommittee held a field hearing on July 17, marking one year since the House first passed the measure.

Source: https://news.bitcoin.com/clarity-act-text-trump-meeting-democrats/