News • 5 min read

Major Crypto Bill CLARITY Act Expected to Be Signed by Trump by July 4, Says Senator

CLARITY Act crypto bill
Written by
admin
Published on
Share
in x f

In a major boost for the cryptocurrency industry, U.S. Senator Bernie Moreno (R-Ohio) has predicted that the Digital Asset Market Clarity Act of 2025 — known as the CLARITY Act — could reach President Donald Trump’s desk by the end of June 2026 and be signed into law before July 4. This ambitious timeline reflects accelerating bipartisan momentum in the Senate after months of negotiations, positioning the United States to establish one of the world’s most comprehensive regulatory frameworks for digital assets.

The legislation aims to end years of regulatory uncertainty by clearly dividing oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), fostering innovation while strengthening investor protections and national security measures.

Background and Legislative Journey

The CLARITY Act, formally H.R. 3633, was introduced by Rep. French Hill (R-AR-2) on May 29, 2025. It passed the House of Representatives in July 2025 with strong bipartisan support in a 294-134 vote. The bill builds on the earlier GENIUS Act for stablecoins, which President Trump signed into law, marking a shift from the enforcement-heavy approach of previous years to a structured, innovation-friendly regime.

In the Senate, the bill has undergone extensive negotiations under the Senate Banking Committee, chaired by Sen. Tim Scott (R-SC). A discussion draft was released, incorporating feedback from stakeholders. Recent compromises, particularly on stablecoin yield provisions, have cleared key hurdles, with a potential committee markup eyed for mid-May 2026.

Senator Moreno’s optimistic outlook aligns with industry expectations. He has stated that resolved issues could allow the bill to advance rapidly through the Senate floor in June.

Key Provisions of the CLARITY Act

The legislation introduces a clear framework for classifying digital assets. It defines a “digital commodity” as an asset whose value is intrinsically linked to a blockchain system, distinguishing it from securities. Once a blockchain achieves sufficient decentralization — termed a “mature blockchain system” — tokens can transition from SEC oversight as investment contracts to CFTC regulation as commodities.

Central elements include:

  • Registration Requirements: Digital commodity exchanges, brokers, and dealers must register with the CFTC, adhering to standards on customer fund segregation, market integrity, anti-fraud measures, and conflict-of-interest rules. Provisional registration pathways ease implementation.
  • Capital Raising Exemption: A new exemption facilitates fundraising with digital commodities, including tailored disclosures and resale restrictions.
  • DeFi Protections: Safe harbors for non-custodial developers, validators, and participants in decentralized finance protocols, provided decentralization criteria are met.
  • Anti-CBDC Measures: The bill incorporates the Anti-CBDC Surveillance State Act, restricting the Federal Reserve from offering certain products directly to individuals and limiting CBDC use in monetary policy.
  • Investor Protections and Oversight: Enhanced disclosures, anti-manipulation authority for spot markets, and studies on topics like DeFi risks, NFTs, foreign adversary involvement, and financial literacy.

The framework preserves SEC authority over primary offerings while shifting mature assets to the CFTC, addressing the long-standing “spot market gap.”

Trump Administration Support and Political Momentum

President Trump has repeatedly championed crypto-friendly policies. At a private Mar-a-Lago event in April 2026, he warned bankers against obstructing the legislation and reaffirmed it as a top priority. Treasury Secretary Scott Bessent has urged Congress to “finish the job” to maintain U.S. financial leadership.

Trump sign CLARITY Act crypto bill momentum has grown with these endorsements, contributing to positive market sentiment, including Bitcoin surpassing key price levels amid optimism.

Senate Republicans, including Sens. Cynthia Lummis and Bill Hagerty, have collaborated on the draft, emphasizing the need to keep innovation onshore and combat illicit finance.

Industry Reactions and Market Impact

The crypto sector has largely welcomed the bill. Companies like Coinbase and Circle have called for swift advancement following recent compromises. Proponents argue it will unlock trillions in sidelined institutional capital and prevent talent and business from migrating to more crypto-friendly jurisdictions like Singapore or the EU under MiCA.

Critics, including some banking groups, have raised concerns about potential competition for deposits from stablecoins and systemic risks. However, recent compromises on yield restrictions appear to have mitigated many objections, with community banks and over 100 crypto firms voicing support.

Challenges and Remaining Hurdles

While progress is evident, challenges persist. These include finalizing DeFi language, securing full committee support, reconciling any differences with the House version, and addressing ethics-related amendments concerning government officials’ crypto holdings. National security experts continue to stress robust provisions against illicit uses.

Implementation will require coordinated rulemaking by the SEC and CFTC, including memoranda of understanding to avoid duplicative burdens. Legal challenges and detailed agency rules could shape the final impact.

Potential Implications and Future Outlook

Passage of the CLARITY Act would represent a watershed moment, providing legal certainty for exchanges, issuers, and DeFi projects. It could accelerate tokenization of real-world assets, enhance blockchain-based payments, and strengthen America’s competitive position in digital finance against global rivals.

For investors, clearer rules promise better protections and reduced scams. For the broader economy, it signals a commitment to technological leadership and innovation.

Trump sign CLARITY Act crypto bill would symbolize a new era of regulatory clarity on America’s Independence Day, boosting confidence across markets.

Conclusion

As the Senate Banking Committee advances toward markup, Senator Moreno’s July 4 target has energized stakeholders. With key compromises in place and strong White House backing, the CLARITY Act stands closer than ever to enactment. Its success could define U.S. crypto policy for years, balancing innovation, security, and consumer protection in the digital age.

Trump sign CLARITY Act crypto bill prospects highlight the transformative potential of this legislation for the United States as a global crypto leader.

Also Read: Crypto Cashback Card: Complete Guide to Rewards, Risks, and Real-World Use