Crypto advocacy groups support CLARITY passage as ethics rules face pushbackThe window for US lawmakers to address a comprehensive crypto market structure bill before the 2026 elections is closing, and industry organizations are calling for action.

Three major crypto advocacy groups—the Crypto Council for Innovation, the Digital Chamber, and the Blockchain Association—have called on US Senate leaders to prioritize a floor vote on the Digital Asset Market Clarity (CLARITY) Act. In a letter addressed to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the groups expressed support for the bill’s passage before the Senate recess in August. While the bill has cleared the Senate banking and agriculture committees, some lawmakers have withheld support, citing unresolved concerns about key provisions, including ethics rules meant to prevent corruption among public officials involved with cryptocurrencies.

The CLARITY Act is viewed as a significant piece of legislation for the crypto industry, aiming to provide a federal framework for digital asset market oversight. It requires 60 votes to pass in the Senate, where Republicans hold a slim 52-47 majority. Republicans have made ethics provisions part of the bill, barring public officials from issuing or sponsoring cryptocurrencies. However, many Democrats, including Senator Ruben Gallego, have criticized these rules as inadequate, calling the Republican proposals insincere and insufficient to address corruption risks.

Industry leaders have voiced their support for CLARITY. Coinbase CEO Brian Armstrong highlighted the lack of a federal framework that has allowed bad actors, such as the FTX collapse, to harm customers and encouraged passing the bill for stronger consumer protections and law enforcement tools. Orest Gavryliak, chief legal officer at DeFi platform 1inch, emphasized that the bill would help establish a regulatory framework fitting for non-custodial protocols, as current efforts often incorrectly attempt to force such protocols into custodial regulatory models.

If the Senate does not hold a vote before its August recess, the bill’s fate may be delayed until just before the 2026 midterm elections, complicating negotiations and timeline prospects. As of the report, event contract data from Kalshi suggested about a 40.3% chance the bill would pass before the recess. The ongoing debate over the ethics provisions remains a key obstacle to bipartisan agreement.