CLARITY Act Nears July Vote as Ethics Debate Stalls Progress

David Nage, portfolio manager at Arca, notes that the industry and policymakers are roughly 85% aligned on the core substance of the bill. After extensive briefings with Senate staff, he suggests that previous disagreements over stablecoin yields have faded, shifting the legislative focus toward how to restrict officials from benefiting from crypto-related business while in office. Nage advocates for a uniform prohibition across the executive branch and Congress to break the current deadlock, hoping to clear a path for a vote when lawmakers return on July 13.

The proposed legislation includes $150 million for crypto crime enforcement and grants exchanges the authority to freeze suspicious transactions for up to 30 days. Industry groups, including the Solana Institute, are simultaneously lobbying to protect developers and node operators from being classified as money transmitters. Kristin Smith, president of the institute, emphasizes that maintaining this distinction is vital for legal certainty in open-source development. If these ethics provisions remain unresolved before the break, Senator Cynthia Lummis warns that the window for action could close, potentially delaying regulatory clarity for years.