The Digital Asset Market Clarity Act is facing a tight timeline in the U.S. Senate. With only weeks left before a key deadline, lawmakers are still working through several complex issues. The most difficult negotiation involves a provision that would limit senior government officials from maintaining business ties with the crypto industry. This is especially relevant given President Donald Trump’s own crypto interests.
Senate Democrats, including Ruben Gallego and Kirsten Gillibrand, are holding close talks with Republican counterparts and the White House. Industry insiders have mostly been watching from the sidelines. While Democrats have rejected some ideas, they have returned to the table quickly, according to a person briefed on the talks. But no details have emerged yet about what the limitations might look like. Earlier, White House adviser Patrick Witt suggested the restrictions should cover a wide range of officials and not target the president directly.
If the rules do affect Trump, it’s unclear how he could untangle himself from his crypto web. This includes his stake in World Liberty Financial, the crypto ties of Truth Social, and his namesake memecoin.
Other Key Negotiations
Even if the ethics issue is resolved, three other talks are still weighing on the Clarity Act. Democrats from the Senate Agriculture Committee, which oversees commodities, have remaining concerns. The law enforcement community is worried about a legal shield for decentralized finance (DeFi) developers. And U.S. bankers are still pressing their dispute over stablecoin yield.
Cody Carbone, CEO of the Digital Chamber, remains optimistic. He told CoinDesk, “The reason I’m optimistic is because every single senator and stakeholder that cares about this, including industry groups like the Digital Chamber, remain committed and remain at the table. No one has given up.”
The Digital Chamber is hosting a fly-in event on Tuesday. About 50 members from crypto firms like Hyperliquid, Elliptic, and Anchorage Digital will visit up to 30 lawmakers’ offices. They hope to drum up interest and support for a floor vote, especially among senators not directly involved in the talks.
Timeline Pressure
Some lawmakers and crypto leaders see the lame-duck session after the November elections as a backup plan. But that period is unpredictable and could be crowded with other congressional action.
Summer Mersinger, CEO of the Blockchain Association, expressed confidence. “Clarity is no longer a question of if, but when Congress gets it across the finish line,” she said. “Lawmakers are tackling the outstanding issues with real bipartisan resolve.”
Analysts are more cautious. Beacon Policy Advisors argued that the Senate needs to pass the bill before its August recess for it to become law this year. If the Senate misses that deadline, the odds of passage diminish significantly.
In a separate note, combined exchange volumes fell 3.45% in May to $4.41 trillion, the lowest since September 2024. However, RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. This shows some parts of the market are still growing despite the broader slowdown.
