U.S. Senate to Hold CLARITY Act Hearing on Digital Asset Regulation in July

The U.S. Senate is set to convene a hearing on the Digital Asset Market Clarity Act (H.R. 3633) on July 17 in New York, marking a pivotal step in defining regulatory boundaries for cryptocurrencies and digital commodities.

Originally proposed by House Financial Services Chairman French Hill in May 2025, the CLARITY Act aims to establish a cohesive framework by assigning the Commodity Futures Trading Commission (CFTC) exclusive oversight of spot markets for digital commodities like Bitcoin, while retaining the Securities and Exchange Commission’s (SEC) authority over assets classified as investment contracts.

This division of responsibilities has long been contentious, as overlapping enforcement by both agencies has stifled innovation and driven development overseas. Advocacy from SEC and Treasury officials has pressured Congress to resolve these ambiguities, with the CLARITY Act emerging as the primary legislative solution.

The bill has gained traction in the 119th Congress. The Senate Banking Committee approved it 15-9 on May 14, with bipartisan support from two Democrats. However, some lawmakers emphasized the need for revisions to an ethics provision addressing financial ties between officials and crypto entities.

By June 1, the legislation was placed on the Senate Legislative Calendar under General Orders (Calendar No. 423), positioning it for full Senate debate. Passage requires a 60-vote threshold, reconciliation with the Senate Agriculture Committee’s version, and final alignment with the House text before reaching the president.

The House previously advanced the CLARITY Act in a package with the GENIUS Act and Anti-CBDC provisions, reflecting strong bipartisan interest. Over 100 crypto firms have publicly supported the bill, though Coinbase briefly reconsidered its backing over liability language—a battle ultimately resolved within the coalition.

Galaxy Research forecasts a 60–75% probability of the bill becoming law in 2026, with a potential presidential signature as early as August 2026. The July 17 hearing will serve as a critical indicator of the bill’s viability.

Concurrently, the Senate passed the 21st Century ROAD to Housing Act on June 22 in an 85-5 vote. Included within this housing legislation is a provision permanently barring the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030. The legislation explicitly states the Fed “may not issue or create a central bank digital currency or any substantially similar digital asset” through 2030.

The House had already approved an Anti-CBDC measure alongside the GENIUS Act, and an earlier version of the housing bill cleared the chamber 390-9 in February. With White House backing and near-unanimous Senate approval, the CBDC ban is poised to become law as part of essential housing reforms.

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