CLARITY Act Faces Final Senate Push Before August Recess as Ethics Deal Reaches White House
Key Takeaways
- •Senators Thom Tillis and Ruben Gallego negotiated a bipartisan ethics package that would empower state attorneys general to enforce the rules, addressing a key Democratic concern about enforcement authority.
- •Anthony Scaramucci publicly predicted that President Trump will support the agreement and warned that lawmakers from either party who obstruct the bill could face electoral consequences in November.
- •Polymarket odds for the CLARITY Act being signed into law have declined to 25% from 30% earlier in the week, reflecting diminished trader confidence amid the Senate's constrained pre-recess schedule.
- •Treasury Secretary Scott Bessent and cryptocurrency firms including Grayscale have urged Senate leadership to schedule a floor vote before senators depart for the August recess.
- •Senator Cynthia Lummis indicated that a Senate vote could take place before the recess ends, leaving approximately one week for the legislation to advance through the chamber.

Anthony Scaramucci expects President Donald Trump to approve a bipartisan ethics agreement tied to the CLARITY Act, a development that could resolve a key Senate dispute even as prediction market odds for the bill's passage have declined ahead of the August recess.
In an X post on July 31, 2026, Scaramucci said Trump would likely support the negotiated provision and questioned who would continue opposing the legislation if the president endorsed it.
Sens. Tillis and Gallego have worked out a very strong bipartisan ethics provision. If POTUS ultimately signs off, which I think he will, who will stand in the way of Clarity? If Dems (or GOPs in the pocket of bank lobby) stand in the way, they will regret it in November.
— Anthony Scaramucci (@Scaramucci) July 31, 2026
Scaramucci warned that lawmakers from either party who obstruct the bill could face political repercussions in the November elections.
Bipartisan Ethics Package Submitted to White House
Republican Senator Thom Tillis and Democratic Senator Ruben Gallego negotiated a bipartisan ethics package and submitted it to the White House for review. The proposal serves as an alternative to the provision previously backed by the administration and Republican senators. The exact language of the bipartisan deal has not yet been made public.
According to journalist Eleanor Terrett, the new package would grant state attorneys general authority to enforce the rules. This amendment addresses a concern raised by Democrats during negotiations — they had opposed the prior version, which assigned enforcement power exclusively to federal prosecutors, arguing that state officials should also be able to investigate potential violations. The push for state-level enforcement authority mirrors provisions already embedded in U.S. securities law, where state regulators routinely parallel federal oversight.
The ethics provision itself has been a flashpoint throughout negotiations, reflecting broader scrutiny of potential conflicts of interest involving public officials and digital asset ventures.
Scaramucci had previously claimed in a now-deleted X post that Trump's children had accepted the bipartisan terms. Neither the White House nor the Trump family has confirmed this claim.
Presidential support could help resolve the ethics dispute surrounding the CLARITY Act, though the legislation still must clear the full Senate process. Senator Cynthia Lummis has indicated that a vote could take place before the end of the August recess. One week remains until that deadline, and the compressed timeline is further complicated by the November election cycle, which narrows the window for substantive legislative action.
Polymarket Odds Drop to 25%
On Polymarket, the probability that the CLARITY Act will be signed into law by President Trump has fallen to 25%, down from 30% earlier in the week. The decline reflects diminished trader confidence amid the Senate's constrained schedule.
Government officials and cryptocurrency firms have pressed lawmakers for swift action. Treasury Secretary Scott Bessent has urged the Senate to take up the bill immediately.
Grayscale has also reached out to Senate leadership, sending a letter to Majority Leader John Thune and Minority Leader Chuck Schumer requesting a floor vote before senators depart for the summer recess. The appeal comes amid growing calls from the digital asset industry for a market structure framework that delineates regulatory authority between the SEC and CFTC — a jurisdictional ambiguity that firms have cited as a barrier to U.S. operations.
The CLARITY Act aims to establish a regulatory framework for the U.S. cryptocurrency market. The current debate centers on the ethics agreement and which officials will have enforcement authority under the legislation.