The CLARITY Act is entering what many are calling its most important phase yet. The U.S. Senate is returning on July 13. Now, lawmakers face a narrow window to advance the landmark crypto market structure bill before the August 7 congressional recess.
Investor Kevin O’Leary says the CLARITY Act now has a 50-50 chance of becoming law this year. However, he warns that geopolitical tensions could slow progress even as the crypto industry pushes for long-awaited regulatory clarity.
Speaking about the bill’s outlook, O’Leary said he remains cautiously optimistic but believes global events could become a distraction.
“I’ve got some pretty good contacts now… 50-50,” he said. “We weren’t planning on war… that could be a distraction.”
O’Leary Says Crypto Rules Are Critical
Despite the uncertainty, O’Leary stressed that passing the CLARITY Act is becoming increasingly important for the U.S. financial system.
“It’s crucial for financial services to resolve this because it’s a competitive weapon,” he said.
He explained that his own business has already started using USDC for cross-border payments. Countries including Switzerland, France, Denmark, and Finland are accepting the stablecoin for compliant transactions.
According to O’Leary, stablecoin payments are far cheaper than Fed wire transfers or ACH payments, while offering full transaction transparency.
“You see where the transaction began, where it ended, and it’s a fraction of the cost of a Fed wire or ACH transfer,” he said.
Senate Returns With Limited Time
The timing of O’Leary’s comments comes as the U.S. Senate returns on July 13, leaving lawmakers with roughly 20 working days before the August 7 congressional recess.
Crypto journalist Eleanor Terrett says this week is expected to be packed with important developments. These include fresh CPI and PPI inflation data, Federal Reserve testimony, and potentially an updated version of the CLARITY Act.
The revised draft will merge proposals from the Senate Banking and Agriculture Committees. However, industry sources say key provisions remain under active negotiation, particularly around ethics rules. Therefore, the timing of a Senate floor vote is uncertain.
Confidence Meter
Likely to advance if: the merged Banking/Agriculture draft resolves ethics-rule language before floor scheduling begins. In addition, no major geopolitical event should dominate the news cycle through early August.
Unlikely to advance if: ethics provisions remain unresolved past this week. This could push negotiations past the point where a floor vote can be scheduled before August 7.
Watch: whether an updated CLARITY Act draft actually surfaces this week as Terrett expects. That’s the tell for whether the 20-day window is realistically usable or effectively already gone.
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