As the discussion around the major regulatory framework intensifies, on July 28, the U.S. Securities and Exchange Commission expressed its support for the major regulatory framework, the CLARITY Act, and its willingness to establish clear rules for the digital asset market.
In the official post on X, Paul Atkins, Chairman of the SEC, stated that “I am committed to supporting Congress in advancing the CLARITY Act, including providing technical assistance. American leadership in the digital finance revolution means matching the energy of American innovators with a regulatory framework worthy of them.”
If Congress Fails, SEC Will Establish Its Own Crypto Rules
The U.S. Securities and Exchange Commission said that it is ready to draft its own regulatory framework for digital assets if Congress fails to pass the CLARITY Act.
According to multiple sources, the SEC could move forward with writing rules for the digital asset market if lawmakers do not advance the CLARITY Act, which is already facing a tight window for approval before the August recess.
The bill is currently being discussed in the U.S. Senate, but a final agreement has not yet been reached due to disagreements over issues such as ethics provisions. These provisions would limit senior government officials’ involvement in the crypto sector.
Hopes for CLARITY Act Cloture Vote This Week Fade
According to Eleanor Terrett’s post on X, hopes that Senate Majority Leader John Thune would conduct a cloture vote on the Digital Asset Market Clarity Act this week are quickly fading. To reach this procedure, filing cloture on the motion to move must take place today in order to allow for a Thursday vote under Senate rules. However, sources linked to the process reportedly revealed that other processes like the Russia and Iran sanctions bill are taking priority.
The CLARITY Act is designed to provide much-needed regulatory clarity for digital assets by dividing regulatory oversight between the CFTC and the SEC. This act will also provide consumer protection while providing a clear regulatory guideline for crypto-based innovations.
The House passed its version with strong bipartisan support in 2025, with a vote of 294 to 134. In the Senate, the Banking Committee advanced its version in May 2026 by a 15-9 vote, with all Republicans and 2 Democrats in favor of the regulatory draft.
In order to pass this regulatory bill, it will require 60 votes for cloture to overcome a possible threshold in the 100-member Senate. At present, Republicans are holding around 53 seats. It means that the bill still requires 7 Democratic votes to approve it.
There is still bipartisan discussion around issues like ethics provisions and state enforcement roles. However, no final deal has been reached. This comes after earlier disagreement over stablecoin yield.
The crypto sector affirmed that it is imperative for leadership to at least start the cloture process before the August recess, which is expected to start around August 8.
The bill is expected to move to next week with the limited floor timing. Thune indicated that a vote is still expected before the August recess. However, some provisions are still facing disagreement.
Despite the delay in the regulatory framework, large numbers of enterprises, companies, and groups have raised their support in favor of this bill and urged the regulators to advance the bill.
On July 28, Consumer Technology Association (CTA) wrote a letter to the Majority Leader, saying that “On behalf of the Consumer Technology Association (CTA), we urge the Senate to bring the Digital Asset Market Clarity (CLARITY) Act to the floor for consideration. After years of bipartisan negotiation and stakeholder engagement, Congress has an opportunity to establish a clear regulatory framework for blockchain and digital asset technologies. The House has already acted with strong bipartisan support. The Senate should now do the same.”
The current draft of the bill revealed by Senator Cynthia Lummis has temporary restrictions, such as barring senior officials from missing certain crypto assets until 2029. This comes after bipartisan negotiations between senators like Ruben Gallego and Thom Tillis.
Earlier, Paul Atkins stated that “This Commission recognizes the importance of advancing our regulatory framework to reflect the realities of today’s operating environment – embracing innovation and new technology. To deliver on President Trump’s goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore, creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain. All while ensuring strong investor protection guardrails are in place and continuing to pursue bad actors who violate the law.”
However, some Democrats have raised questions about the ethics provisions, calling them insufficient and a conflict of interest.
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