The CLARITY Act remains stalled in the U.S. Senate, leaving the digital asset industry without a definitive federal framework to determine SEC or CFTC regulatory jurisdiction.

Key Points

• The CLARITY Act passed the House on July 17, 2025, but faces significant legislative hurdles in the Senate before the upcoming August recess.
• Four primary disputes, including ethics requirements, law enforcement concerns, and regulator staffing shortfalls, currently prevent the bill from reaching a floor vote.
• The GENIUS Act, which established a federal framework for payment stablecoins, was signed into law last year and faces its first rulemaking deadline on July 18.
• Senate Majority Leader John Thune has prioritized the National Defense Authorization Act, further compressing the timeline for a potential CLARITY Act vote.
• Without congressional action, the industry remains subject to "regulation by enforcement," where jurisdictional authority shifts based on the current administration.

Why it Matters

The ongoing legislative delay forces companies to manage significant regulatory risk without a clear legal standard for digital asset classification. This uncertainty complicates long-term capital allocation and governance, as firms must prepare for two distinct regulatory frameworks while awaiting a final decision from Congress.