Clarity Act Could be Law by July 4, White House Adviser Says
White House adviser Patrick Witt said at Consensus Miami on May 10 that the Clarity Act could become law by July 4, putting a hard deadline on the most significant cryptocurrency legislation in US history. Senator Kirsten Gillibrand pushed at the same event for an ethics provision targeting elected officials holding digital assets.
A separate report from Blockchainreporter indicates banks are lobbying against the bill just days before a scheduled Senate vote, demanding revisions to a compromise they had previously accepted.
What the Clarity Act Would Do
The Clarity Act is a comprehensive digital asset market structure bill that would assign regulatory jurisdiction between the SEC and the CFTC over cryptocurrency tokens. The legislation aims to define when a digital asset is a commodity versus a security, a distinction that has driven years of enforcement uncertainty.
If passed, it would give exchanges, issuers, and investors a federal framework to operate under rather than navigating a patchwork of state rules and agency guidance.
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Background
The Clarity Act has moved through congressional committees in 2025 and early 2026, surviving multiple amendment fights and a White House veto threat that was eventually withdrawn. The banking industry’s opposition centers on stablecoin provisions within the bill that would allow nonbank entities to issue dollar-pegged tokens, stablecoins being cryptocurrencies designed to maintain a fixed value against a reference asset like the US dollar.
Banks argue this arrangement creates unfair competition. Senate negotiators reached a bipartisan compromise on that stablecoin language in April 2026, but lobbying pressure from major banking groups resumed in the days that followed, according to Blockchainreporter.
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What Comes Next
Gillibrand’s ethics provision adds a new variable.
If adopted, the measure would bar sitting members of Congress and the executive branch from holding or trading digital assets while in office. That provision has support from reform advocates but could cost votes in chambers where cryptocurrency holdings are common.
Witt did not commit to a specific vote date, leaving the July 4 timeline aspirational rather than locked. A final Senate floor vote is widely expected before Memorial Day recess, with reconciliation between chambers to follow if the bill clears the upper chamber.
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