An important step has been taken in the framework of the CLARITY Act, which could determine the future of the cryptocurrency market in the United States. On July 29, Republican Senator Tom Tillis and Democratic Senator Ruben Gallego completed the introduction of amendments to conflict of interest rules — one of the most contentious aspects of the bill.
The new bipartisan bill aims to tighten restrictions on the ties between high-ranking federal officials and digital assets. However, the fact that the revised text has not yet been reviewed by a significant portion of the Senate, and Congress will go on recess in August, adds uncertainty regarding the bill's timeline for passage.
Alternative Ethical Regulation Compared to White House Proposal
The new text, drafted by Tillis and Gallego, is presented as an alternative to the ethics code approved by the White House on July 22.
Democratic senators considered some restrictions in the previous White House-backed proposal, set to expire in 2029, insufficient and sharply criticized the new regulation. The full text of the new revision has not yet been made public. However, the regulation is expected to introduce stricter rules limiting federal officials' authority to issue digital assets or directly participate in such projects.
Key objectives of the CLARITY Act include clarifying jurisdictional boundaries between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, establishing clear rules for spot markets of digital commodities, and reducing regulatory uncertainty in the crypto sector.
The bill also addresses controversial topics such as stablecoin yield, decentralized finance applications, and the use of digital assets for illicit financing. However, progress on other important issues seems unlikely without political consensus on conflict of interest regulation.
Time Running Out for Senate Passage of the Clarity Act
Senate Majority Leader John Thune announced that a procedural vote on the bill could take place between July 29 and August 1. However, Thune also expressed doubts about whether the entire bill could pass through the Senate before the August recess.
The CLARITY Act bill passed by the House of Representatives was approved in July 2025 by a vote of 294 to 134. However, since arriving in the Senate, the bill has been at the center of negotiations for over a year, undergoing various amendments, adding ethical provisions, and clarifying regulatory authority.
With senators having very little time left to consider the latest amendments, there is a high likelihood that consideration of the bill will be postponed until after Congress's August recess ends.
How Could Stablecoin Yield Impact the Cryptocurrency Market?
The Clarity Act is considered one of the most comprehensive attempts to date to delineate the authority of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital asset markets.
The stablecoin yield regulation rules introduced in the bill could have direct implications, particularly for DeFi protocols, centralized crypto exchanges, and U.S.-based stablecoin issuers.
How Congress approaches models for accruing interest and rewarding stablecoin holders could also affect the competitiveness of American companies against global rivals. Strict restrictions could push users towards offshore platforms, while a more flexible system could strengthen the U.S. position in the stablecoin and digital asset market.
Therefore, the discussion around the CLARITY Act is being closely watched not only by crypto companies in the U.S. but also by the global digital asset market.
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