The latest draft of the Digital Asset Market Clarity Act has been rejected by seven Senate Democrats, who say it falls short on ethics, consumer protection, and illicit finance safeguards. The move deepens a legislative standoff that has already pushed the bill past its informal July 4 signing target and left it stranded on the Senate calendar with no floor vote scheduled.
The CLARITY Act is the most ambitious U.S. crypto market-structure bill ever to reach this stage. It would create a statutory framework dividing digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission, ending years of jurisdictional ambiguity. The House passed it 294–134 in July 2025 with more than 70 Democratic votes, and the Senate Banking Committee advanced it 15–9 in May 2026. Since June 1, however, the bill has sat at Calendar No. 423, unable to attract the 60 votes needed to break a filibuster.
Republicans hold 53 seats, and Senators Josh Hawley and Rand Paul are expected to vote no. That means at least seven Democrats must cross the aisle. As of mid-July, the number of Senate Democrats publicly indicating support for the current draft is zero. The two Democrats who voted for the bill in committee—Ruben Gallego of Arizona and Angela Alsobrooks of Maryland—have both said their committee votes do not guarantee floor support.