US prosecutors propose changes to CLARITY as voting window narrows: Report

cointelegraphPublished on 2026-07-29Last updated on 2026-07-29

Abstract

US law enforcement organizations have proposed changes to the cryptocurrency market structure bill known as the CLARITY Act, as the Senate's window to vote narrows before a month-long recess. The groups requested alterations to provisions regarding developer liability within the bill. The White House crypto adviser indicated the proposals do not align with the administration's position. The legislation faces pushback from some Democrats over ethics rules related to former President Trump's crypto investments. Senate leaders have not scheduled a vote, and procedural hurdles make passage before the recess unlikely. A key aspect of the bill would shift primary regulatory authority over digital assets from the SEC to the CFTC.

Organizations representing law enforcement officials in the US have reportedly proposed changes to a comprehensive cryptocurrency market structure bill under consideration in the Senate, with only days left until the chamber breaks for a month-long recess.

According to a Tuesday Politico report, the National Association of Assistant US Attorneys and the National District Attorneys Association sent a letter to the White House asking for changes on provisions regarding developers in the Digital Asset Market Clarity (CLARITY) Act. The changes proposed to the Blockchain Regulatory Certainty Act (BRCA) within the CLARITY Act included that guidelines on developers not “create, expand, or modify criminal liability under Federal law.”

In response to reports on the proposed changes, White House crypto adviser Patrick Witt said that the provisions were “not even close” to the Trump administration’s position, and implied that it was not the result of “productive negotiations.” Senator Catherine Cortez Masto has reportedly been pushing the White House to address the BRCA before any potential vote.

The provisions came as the CLARITY Act faces pushback from many Democrats over ethics rules in the bill regarding US President Donald Trump’s crypto investments, which netted him $1.4 billion in 2025. As of Wednesday, Senate Majority Leader John Thune had not scheduled a vote on the legislation before the chamber breaks for state work periods.

Related: Wyden urges Senate leaders to keep dev protections in crypto bill

The US Senate is scheduled to start state work periods from Aug. 7 to Sept. 14, giving lawmakers a limited window to pass crypto market structure before the recess and potential complications from the 2026 midterm elections in November. Thune told reporters last week that the Senate was unlikely to vote on the bill before the August recess.

”Even if CLARITY were brought up today, the procedural steps — cloture → amendment process → second cloture → up to 30 hours of debate — make finishing before recess extremely difficult without [unanimous consent] agreement to waive process, which is rare on contested bills,” said Anne Kelley, a partner at consulting firm Mercury Strategies, in a Monday X post.

CLARITY could shift crypto authority to US commodities regulator

One of the key points of the crypto market structure bill would be to change the regulatory purview over digital asset largely from the US Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), which currently has fewer tools and resources to address enforcement and oversight issues. Both agencies are also currently understaffed at the leadership level, with only one CFTC chair and three SEC commissioners.

Magazine: Here’s why the CLARITY Act’s ethics deal may be so hard to reach

Related Questions

QWhat is the main concern expressed by US prosecutors regarding the CLARITY Act, according to the article?

AThe main concern expressed by US prosecutors is about provisions regarding developers in the Digital Asset Market Clarity (CLARITY) Act. Specifically, they proposed changes to ensure that guidelines on developers do not 'create, expand, or modify criminal liability under Federal law.'

QWhat is the stated position of White House crypto adviser Patrick Witt on the proposed changes to the CLARITY Act?

AWhite House crypto adviser Patrick Witt stated that the proposed provisions were 'not even close' to the Trump administration's position and implied they were not the result of 'productive negotiations.'

QWhy does the article state there is a limited window to pass the crypto market structure bill in the Senate?

AThere is a limited window because the US Senate is scheduled to start state work periods from August 7 to September 14. Furthermore, the 2026 midterm elections in November could introduce potential complications, pressuring lawmakers to act before the recess.

QWhat is one of the key regulatory changes proposed by the CLARITY Act regarding oversight of digital assets?

AOne key regulatory change proposed by the CLARITY Act is to shift the primary regulatory authority over digital assets from the US Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).

QAccording to Anne Kelley, why would it be extremely difficult to pass the CLARITY Act before the Senate recess even if it were brought up immediately?

AAccording to Anne Kelley, even if the CLARITY Act were brought up immediately, the required procedural steps—including cloture votes, an amendment process, and up to 30 hours of debate—would make finishing before the recess extremely difficult without a rare unanimous consent agreement to waive the normal process.

Related Reads

SemiAnalysis on the Epic Plunge: It's Not Over Yet

SemiAnalysis Weekly discusses the recent sharp correction in the semiconductor market after a historic first half. Analysts Doug O'Loughlin and Dylan note that despite healthy fundamentals, markets like South Korea's KOSPI have plunged 40%, wiping out leveraged retail investors. A core debate focuses on AI demand versus supply constraints. Dylan cites SemiAnalysis's internal use of AI coding agents, leading to a 100x increase in AI spending, as evidence of powerful demand. Doug agrees demand is strong but questions its exact magnitude, calling it a "trillion-dollar question." His primary concern is physical and financial bottlenecks: a shortage of 100,000 electricians in the US, massive $450B in corporate debt issuance by hyperscalers (funded by a shrinking pension pool), and labor/scale limits in regions like Taiwan, where TSMC constitutes 20% of GDP. The conversation covers market dynamics, including the typical semiconductor cycle where over-ordering leads to crashes, China's growing memory capacity, and the potential for older chips like the H100 to lose value as models scale. Politically, AI is seen as a likely scapegoat in upcoming elections, though not a top-tier voter priority. The analysts conclude that while the long-term potential is significant, the scaling path is narrowing. The challenge is matching exponential compute demands with real-world constraints on capital, labor, and permits, risking scenarios where massive investment outpaces near-term revenue generation.

marsbit42m ago

SemiAnalysis on the Epic Plunge: It's Not Over Yet

marsbit42m ago

After Robinhood's Aggressive Entry, Why is PUMP Defying the Trend and Rising?

Amid a prolonged crypto bear market that has strained many projects, Pump.fun stands out by maintaining strong profitability. Despite a major token unlock in mid-July that was expected to cause selling pressure, its native token PUMP has risen nearly 48% over the past month. Analysis shows only a small portion of unlocked tokens were sold, with 92% of investor allocations still held. A buyback-and-burn mechanism has also supported the price, though daily回购 funds have declined by 77.5% from their peak, partly due to a change in tokenomics and lower platform revenue. Pump.fun remains a top revenue generator in crypto, with annualized revenue of around $450 million, ranking just behind giants like Tether and Circle. However, its daily revenue is down about 69% from its all-time high, reflecting dependence on meme coin market cycles. The platform also faces a class-action lawsuit alleging market manipulation and securities violations. New competition has emerged with Robinhood Chain's launchpad, which recently saw higher weekly volume and active addresses than Pump.fun. While Pump.fun's metrics haven't declined yet, it has responded with a new token launch mechanism called BOOST to improve liquidity. This has increased platform activity but raised community concerns about potential exploitation for short-term pumps. Ultimately, Pump.fun's success remains tightly linked to meme coin speculation and broader market sentiment.

marsbit42m ago

After Robinhood's Aggressive Entry, Why is PUMP Defying the Trend and Rising?

marsbit42m ago

Trading

Spot
活动图片