Clarity Act gets stuck in the Senate! Moral provisions are stalled and stuck in limbo, Trump’s White House closed-door meeting has kept silent, and as the recess countdown begins, time pressure ignites

The push for a key U.S. crypto regulatory bill has again fallen into a deadlock. According to Crypto In America, with the U.S. Congress heading into the countdown to its August recess, the Digit al Asset Regulatory Clarity Act (Clarity Act)—a bill closely watched by the industry—has yet to reach consensus over the “ethics” clause’s conflict-of-interest issue, preventing the release of the updated full text of the bill. Even though President Trump personally convened a closed-door meeting with White House legal counsel and Republican senators, the White House has not yet clearly indicated its stance, greatly reducing the chances of the bill clearing before the recess.

(Background: U.S. lawmakers reveal: Under the CLARITY Act clarity bill, passage could happen next week—at the Senate!)

(Additional context: Trump and senators apply pressure for the CLARITY Act as it sprints into the August recess, with enforcement units hitting on two fronts)

Table of contents

Toggle

• Trump convenes aides and senators in a closed-door meeting, but the White House still has not given an answer
• Sheriffs’ Association publicly opposes! Illegal finance becomes a two-party flashpoint
• This week faces a life-or-death situation; passage before the recess may be out of reach
• This week’s global roundup of CEOs and crypto focus

A compliance milestone that the U.S. crypto industry is pushing hard for is stuck right at the Senate chamber door. According to the foreign media Crypto In America, with only about 14 working days left until Congress’s August recess, the key crypto regulatory bill Clarity Act still is not ready to be submitted for a vote in the chamber. The core sticking point is that the two parties have not yet reached consensus on the “ethics” clause that would restrict government officials from profiting from digital assets, and the White House’s stance remains ambiguous, leaving the updated bill text unable to see the light of day for now.

Trump convenes aides and senators in a closed-door meeting, but the White House still has not given an answer

To break the deadlock, on July 17 (last Thursday, Taipei time), U.S. President Donald Trump held a high-level meeting at the White House’s Oval Office. The lineup of attendees was strong, including White House Chief of Staff Susie Wiles, White House legal counsel David Warrington, Acting Attorney General Todd Blanche, the executive director of the Crypto Council Patrick Witt, as well as Republican crypto stalwarts including Wyoming Senator Cynthia Lummis and Ohio Senator Bernie Moreno.

The core purpose of this meeting was to seek President Trump’s support for moral rules “to prevent government officials from using digital assets to profit.” However, as of the time of publication, the White House still has not clearly stated which specific parameters it supports. This has sparked strong dissatisfaction among Democratic senators, who complain that in recent weeks, they have been kept largely in the dark during negotiations over the ethics clause.

Sheriffs’ Association publicly opposes! Illegal finance becomes a two-party flashpoint

In addition to the ethics clause stalling, the bill is also facing strong resistance from traditional law-enforcement leadership. The National Sheriffs’ Association has recently publicly expressed opposition to the Clarity Act, even sharply criticizing crypto as the “cartel’s preferred currency,” arguing that if the bill passes it would make enforcement actions more difficult. This opposition has already directly influenced the stance of key Democratic senators Catherine Cortez Masto and Mark Warner—both have clearly said their support will depend on whether the bill can fully address illegal finance and money laundering.

Meanwhile, the crypto industry is still anxiously waiting for the updated full text, especially watching the final fate of the Blockchain Regulatory Clarity Act (BRCA), as well as restrictions in the Senate Agriculture Committee’s provisions on crypto exchanges’ “vertical integration,” “affiliate trades,” and “conflicts of interest.” In response, Summer Mersinger, executive director of the Blockchain Association, is relatively optimistic. She believes the BRCA should remain unchanged, and that revisions to the parts related to the banking industry would be minimal as well. The Agriculture Committee currently appears to have only technical tweaks left.

This week faces a life-or-death situation; passage before the recess may be out of reach

Although the crypto industry and some pro-crypto lawmakers still hope for votes this week, given the realities of the political schedule it is highly unlikely. The mainstream view on Capitol Hill currently holds that the Senate must trigger a “cloture vote” before the end of this week, and must successfully secure 60 votes of cross-party support, before the bill can be advanced for a substantive vote on the floor.

Market analysts warn that if this week fails to successfully trigger cloture, and next week is also unable to bring the bill onto the Senate floor, then the chance of passing the Clarity Act before Congress’s August recess would basically be declared dead. That would add more uncertainty to the regulatory direction of the U.S. crypto market in the second half of this year.

This week’s global roundup of CEOs and crypto focus

With Congress reconvening, investors should also watch for several major events this week that involve both the crypto industry and traditional finance:

• Monday (7/20): The U.S. House of Representatives and Senate formally reconvene.
• Tuesday (7/21): The Out East Summit opens in Long Island; the House Financial Services Committee will hold oversight hearings regarding the Financial Crimes Enforcement Network (FinCEN).
• Wednesday (7/22): CME Group and Nasdaq release their latest financial reports; the Center for American Progress (CAP) will host a roundtable titled “Stop Trump’s Crypto Corruption,” featuring Senator Chris Murphy.
• Thursday (7/23): The Senate Banking Committee holds a confirmation hearing, including Brian Johnson, nominee for the Consumer Financial Protection Bureau (CFPB).
• Friday (7/24): The Office of the Comptroller of the Currency (OCC) deadline for comments on the GENIUS Act rules.