The CLARITY Act is entering what could be its most important phase yet. As the U.S. Senate returns to Washington following the Memorial Day recess, senators are expected to restart discussions on crypto market structure legislation this week.
The timing is crucial. Supporters have only a few weeks to advance the bill before the July 4 recess. If it slips into next year, the legislation could face a very different political landscape after the midterm elections.
Two major crypto deadlines are also arriving this week. The public comment period for the GENIUS Act stablecoin framework closed on June 2, while Senate efforts to move the CLARITY Act forward are expected to resume on June 3.
Senators Push for Action
Senator Cynthia Lummis has warned that the U.S. cannot afford further delays in digital asset regulation.
“America can’t lead international conversations about digital asset standards while refusing to pass its own,” she said. Lummis argued that other countries could fill the regulatory vacuum if the U.S. fails to act, adding, “China is not waiting.”
Senator Tim Scott also voiced support, calling the CLARITY Act “the future of finance” and saying it would help establish America as the global crypto capital.
Banks and Crypto Industry Collide
The bill continues to face resistance from parts of the banking sector.
JPMorgan CEO Jamie Dimon recently criticized Coinbase CEO Brian Armstrong, who has been lobbying heavily for crypto legislation.
“No one’s gonna bow down to this guy or Coinbase,” Dimon said, accusing Armstrong of overstating his role as a representative of the crypto industry.
Dimon also argued that the current proposal fails to adequately protect depositors and strengthen anti-money laundering safeguards. Reports suggest banking groups, community banks, and credit unions remain opposed to parts of the legislation.
Coinbase Sees Momentum Building
Coinbase Chief Policy Officer Faryar Shirzad offered a very different view, describing the CLARITY Act as the biggest financial regulatory bill since Dodd-Frank.
According to Shirzad, the legislation could open the door for banks to participate more actively in crypto markets.
“I know JPMorgan wants to get into it. Every other big bank wants to get into the crypto sector,” he said.
The bill already passed the Senate Banking Committee by a 15-9 vote and will need 60 votes to clear the Senate floor.
June Could Be a Turning Point
Galaxy Digital CEO Mike Novogratz has called June a “now or never” moment as the bill competes with budget negotiations and other priorities for Senate floor time.
Meanwhile, BitMEX co-founder Arthur Hayes remains opposed, saying, “I hope Trump vetoes the CLARITY Act if it ever gets to his desk.”
With Senate scheduling pressures mounting and the legislative window narrowing, the next few weeks could determine whether the CLARITY Act advances this year or faces another lengthy delay.
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