New Draft of Digital Asset Market Clarity Act Expected Next Week

According to multiple sources, lawmakers are expected to unveil a new draft of the Digital Asset Market Clarity Act soon. This updated version aims to consolidate different provisions from the Senate Banking and Agriculture Committees into a single document, which will include around 70 additional pages.

Despite these developments, challenges remain. As highlighted by Jesse Hamilton of CoinDesk, the Clarity Act faces a narrowing timeline to be passed into law before the end of 2026. If the updated draft does not address key areas of disagreement, it may not make significant progress.

"Time is running short for the Clarity Act to wind its way through Congress and to the president’s desk for a signature in 2026," noted Hamilton. The potential for a Senate floor vote could occur during the weeks of July 20 or July 27, depending on whether enough support materializes.

Senate Majority Leader John Thune expressed a willingness to bring the bill to a vote. However, to achieve the necessary 60 votes in the Senate, it is crucial for at least seven Democrats to back the bill, complicating matters given the upcoming midterm elections scheduled for November 3, 2026.

Furthermore, the absence of an ethics provision remains a significant hurdle. If the draft lacks even a placeholder for addressing ethics, it may deter bipartisan support, especially among Democrats. Sources indicate that the White House's engagement with the bill's progress has decreased, potentially awaiting a resolution to outstanding issues.

Interestingly, proponents of the bill received some positive news regarding a provision from a housing bill that bans the Federal Reserve from issuing a central bank digital currency for at least four years. This development alleviates concerns that a CBDC ban could complicate the Clarity Act's negotiations.

Upcoming events to watch include Fed Chair Kevin Warsh’s testimony before various congressional committees this week. Importantly, the House Financial Services Committee will hold a hearing focused on the Clarity Act later this week. Monitoring the outcomes of these discussions may provide further insight into the bill’s prospects.