Clarity Act faces crucial Senate vote Tuesday in big moment for crypto

Long-awaited vote on crypto market structure legislation is set for the Senate on Tuesday, but it remains unclear whether the measure known as the Clarity Act has enough votes to pass as last-minute lobbying by banks and the cryptocurrency industry intensifies.

The Clarity Act, which would establish a new regulatory structure for cryptocurrencies and other digital assets, has languished in the Senate for months. The bill cleared the Senate Banking Committee in May, but has stalled as Senate leaders have struggled to wrangle the 60 votes needed for approval from the chamber. With full attendance, at least seven Democrats would need to support the measure to escape the filibuster.

A myriad of issues have slowed the process and could put the vote in jeopardy. Banks warn they cannot support the bill unless it includes a fix to stop interest-like payments on stablecoin, which they say could cause deposit flight. And Democrats, only two of whom voted to advance the bill out of committee, have said they cannot support the bill unless it includes stronger ethics language to prevent officials like President Donald Trump and his family from profiting from crypto ventures.

The preliminary vote on Tuesday is a put-up-or-shut-up moment for the crypto bill, which Senate Majority Leader John Thune, R-S.D., scheduled just before senators left for their August recess. Supporters are hopeful they can scrape enough support to keep the bill alive.

“Over the past year, this bipartisan process has given everyone at the table a real chance to shape the Clarity Act, and the legislation genuinely reflects the priorities of both sides of the aisle,” Sen. Cynthia Lummis, R-Wyo., one of the leaders of the bill, said after releasing updated text Thursday to try to garner support. “It’s a good bill, and it’s time for it to become law.”

Many Democrats oppose the bill, largely because of the lack of ethics language they say must address Trump and his family’s profiting off of crypto ventures.

“I can assure you that I’m not hearing from my constituents that their number one concern is to pass the Clarity Act,” Sen. Chris Van Hollen, D-Md., said in a Sunday video on X. “This is a bill that is masquerading as a way to create good regulation and protection for consumers with respect to cryptocurrency, but it has some big problems that have not been fixed.”

Van Hollen said in his post that “We can’t let this pass.”

Still, the Clarity Act appears to be a jump ball at this point.

Republican leaders on the bill released an update to the measure late Sunday that they say reflects their final offer to meet Democratic demands for the bill. The updated bill includes what the Republicans say represents large parts of a crypto ethics agreement brokered by Sens. Thom Tillis, R-N.C., and Ruben Gallego, D-Ariz., that Trump has now agreed to. That includes a key Democratic ask to allow state attorneys general to enforce ethics requirements on federal officials.

The bill now also includes a…