Crypto Industry Urges Senate to Pass CLARITY Act Before Midterms
Terrill Dicki Jun 10, 2026 06:15
Over 200 crypto firms push U.S. Senate to pass the CLARITY Act, a crucial regulatory bill for digital assets, before the midterm elections this November.
Over 200 crypto companies and advocacy groups are pressuring the U.S. Senate to prioritize a vote on the Digital Asset Market CLARITY Act before the critical midterm elections in November. In a joint letter shared on June 8 by the lobbying group Stand With Crypto, industry leaders highlighted the urgency of advancing the bill, which they argue is essential for keeping crypto innovation and jobs within the United States.
The CLARITY Act, passed by the House in July 2025 and advanced by the Senate Banking Committee in May 2026, aims to establish a comprehensive regulatory framework for digital assets. Its core resolve is the jurisdictional tug-of-war between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). By clearly designating which assets are "digital commodities" under the CFTC and which are "digital asset securities" under the SEC, the bill promises to replace the current patchwork of regulation-by-enforcement with precise statutory rules.
However, the bill's progress has been hampered by contentious provisions. Banking groups have lobbied for bans on stablecoin yield offerings, while the crypto industry has pressed for protections for decentralized finance (DeFi) developers and node operators. These disagreements, along with calls for stronger anti-money laundering safeguards, have stalled negotiations despite bipartisan support in the Senate Banking and Agriculture Committees.
Stand With Crypto, along with other influential groups like the Blockchain Association and the Crypto Council for Innovation, warned in their letter that delay risks ceding the U.S.’s leadership role in digital asset markets to offshore jurisdictions. "The question before Congress is whether that future will be built in the United States — under U.S. law, U.S. oversight, and American values — or continue moving to offshore jurisdictions with less transparency, weaker consumer protections, and limited accountability," the letter stated.
Adding to the urgency, Galaxy Digital recently lowered its odds of the bill passing in 2026 from 75% to 60%, citing a narrowing legislative window. According to analysts, the Senate must vote on the bill before its August recess or risk running out of time entirely. Without legislative action, unresolved regulatory uncertainty could deter institutional investment, slow innovation, and push crypto infrastructure overseas.
The CLARITY Act is one of the most ambitious crypto regulations to date. Beyond token classification, it introduces new registration requirements for exchanges, brokers, and dealers, provides legal carve-outs for DeFi participants, and establishes rules for stablecoin rewards programs—an area that remains a flashpoint in negotiations. It also explicitly prohibits the Federal Reserve from issuing a retail central bank digital currency (CBDC), a move that has drawn both praise and skepticism.
Senator Cynthia Lummis, a key architect of the bill, said lawmakers are working to address concerns around ethics and illicit finance provisions to ensure the legislation garners the 60 votes needed to avoid filibuster. Yet, as of June 10, there has been little evidence of substantive progress on these issues.
With the midterms looming, the crypto industry is running out of time to secure the regulatory clarity it deems vital for the sector’s long-term health. Whether the CLARITY Act reaches the Senate floor in time remains to be seen, but its outcome will undoubtedly shape the future of the U.S. crypto market.
Image source: Shutterstock.jpg)