The U.S. Senate has released a revised draft of the CLARITY Act, combining versions previously advanced by the Senate Banking Committee and the Senate Agriculture Committee. The move marks a significant step toward comprehensive federal legislation governing cryptocurrency market structure, an area where lawmakers have been working to define how digital asset oversight should be divided across federal authorities.

The updated text adds, for the first time, an ethics provision intended to restrict certain federal officials from issuing or sponsoring digital assets while serving in office. That issue had been a major obstacle in negotiations over the bill.

Lawmakers are expected to file a motion to proceed early next week. If Senate leadership secures enough support to advance the measure, floor consideration could begin during the week of August 3. The accelerated schedule reflects congressional efforts to act before the August recess, when lawmakers’ attention is expected to shift toward the midterm election cycle.

Ethics Provision Addresses Key Negotiating Issue

The revised bill includes language aimed at addressing concerns about potential conflicts of interest involving senior government officials and digital assets. The ethics section would apply to the president, vice president, members of Congress, federal judges, and other covered officials.

The provision also includes a sunset clause that is scheduled to expire in January 2029.

In addition to the ethics language, the merged draft keeps protections for software developers and includes negotiated changes related to consumer safeguards and law enforcement. Supporters say the combined text represents the most complete framework so far for defining how federal agencies would divide regulatory responsibilities over digital assets.

Senate Vote Still Faces Procedural Hurdles

Despite the release of the unified draft, the legislation still faces procedural and political challenges. Senate leaders must first win approval for the motion to proceed before formal floor debate can begin, making the next vote a test of whether there is enough support to take up the bill rather than a final vote on the legislation itself.

Because Senate rules require broad bipartisan support to overcome procedural hurdles, lawmakers are continuing negotiations with members of both parties over remaining issues.

Market participants are watching the legislation closely because it could create long-awaited regulatory clarity for digital asset markets in the United States. If the Senate approves the bill, it would move closer to final congressional approval, though additional legislative steps would still be required before it could become law.