Politicians And Crypto Leaders Clash Over Newly Released CLARITY Act Text

Published by

Steve Muchoki

July 23, 2026

Judge's gavel next to a regulation checklist and US Capitol building.

Senate Republicans and the White House have officially released the latest update of the Digital Asset Market Clarity Act. The new version incorporates previous drafts from the Senate Banking and Agriculture committees, as well as negotiations between Republican lawmakers (Senators Cynthia Lummis and Bernie Moreno) and the White House.

Within minutes of its release, the bill sparked varied reactions from both politicians and crypto leaders. Here is what it says and the different responses it drew.

What does the new CLARITY Act text say?

First, it addresses the ethics package the White House recently agreed to.

Secondly, the new language includes a sunset clause for the above ethics package stating that it expires after January 20, 2029, at noon.

Third, the bill places civil enforcement powers under the US Department of Justice (DoJ). This grants them the authority to sue exchanges that list banned tokens.

Finally, the bill disassociates non-custodial crypto developers from money transmitters.

Feedback from legislators and the crypto community

Nonetheless, Democrats are yet to sign off on the new text, arguing that its enforcement mechanisms remain insufficient. They also warn that the temporary nature of the sunset clause undermines long-term ethical standards. In Senator Angela Alsobrooks’ words:

“This DOJ enforcing an ethics provision? That’s an unserious offer, and I wouldn’t support the bill if that’s the language.”

Senator Ruben Gallego concurred, saying it leaves too many loopholes for public officials’ crypto dealings.

Supporters such as Lummis urged the Senate to move hastily in passing the Act following the ethics compromise.

Cody Carbone, CEO of the Digital Chamber, celebrated the text as a “meaningful step” in America’s crypto regulation. Summer Mersigner, CEO of the Blockchain Association, was grateful to both sides of Congress for the progress made so far.

Despite this development, the odds of the legislative proposal becoming law in 2026 remain at a low of 33% on Polymarket.

Source: Polymarket

Congress will next meet regarding the Act on July 27, 2026.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.