Treasury Secretary Scott Bessent stated July 21 that the CLARITY Act, a digital asset market structure bill, has reached the '1-yard line' after months of negotiation. Bessent's comments to Bloomberg came the same week Senate Banking Committee member Kevin Cramer told Fox Business that lawmakers are 'almost there' on the bill. Bitcoin rose approximately 2.5% toward $67,000 following the announcement, while Coinbase Global shares jumped as much as 13%, signaling investor expectations for near-term regulatory clarity in the cryptocurrency sector.
Bessent Confirms CLARITY Act Nears Completion as Markets React
Bessent told Bloomberg that the digital asset market structure bill, formally the CLARITY Act, is nearly finished after months of negotiation, describing it as a '1-yard line' situation for Congress. Senate Banking Committee member Kevin Cramer told Fox Business that the bill grows 'clearer' as 'each issue gets dealt with.'
Bitcoin rose about 2.5% toward $67,000 before retreating to $66,000 following Bessent's comments. Coinbase Global shares jumped as much as 13%, indicating investors are pricing in regulatory clarity as a near-term catalyst.
The CLARITY Act requires 60 votes to clear the Senate. Republicans hold 53 seats, meaning at least seven Democrats must support the bill for it to advance. Senate Majority Leader John Thune is aiming to bring the bill to the floor before the chamber's August recess. Cramer estimated the Senate has 'a couple more weeks' before the break begins.
Ethics Provision Dispute Centers on Gillibrand's Role
The remaining obstacle centers on ethics language added to satisfy Democratic holdouts. The White House reached an agreement on ethics-package terms during the week of July 20 and sent draft language to select Senate Republicans. Democrats stated they were shut out of those talks and have not yet seen the text themselves, according to reporting on the negotiations.
Senator Kirsten Gillibrand, who chairs the Democratic Senatorial Campaign Committee, has taken the lead in brokering those ethics terms. Three progressive groups—Indivisible, Demand Progress, and the Revolving Door Project—sent a letter to every Democratic Senate office attacking her involvement. The letter argued: 'Senator Kirsten Gillibrand, chair of the Democratic Senatorial Campaign Committee (DSCC), is a prime example of a Democratic leader whose conduct undermines efforts to hold the Trump administration accountable for their rampant corruption.'
The groups added that 'criticisms of the Trump administration's overwhelming corruption fall flat when voters perceive the critics to be engaged in substantively similar behavior,' tying Gillibrand's dealmaking on crypto ethics rules to complaints about her fundraising ties to the industry.
Gillibrand defended her approach by pointing to a specific provision she is pushing: a rule barring elected officials and their spouses from issuing or sponsoring their own digital assets. 'This is a commonsense requirement that should get broad bipartisan support,' she stated, adding that 'public officials and their spouses should not be issuing memecoins.'
Senate Targets Floor Vote Before August Recess
The disagreement centers on process rather than substance. Democrats broadly support some form of ethics restrictions on lawmaker crypto activity; the dispute concerns who wrote the language and whether it went through the normal bipartisan channel.
With Thune targeting a floor vote before the August break and Cramer's 'couple more weeks' timeline aligning with that deadline, the bill's fate will be decided in a compressed window. The question remains whether Thune can secure seven Democratic votes before the Senate leaves for the August recess.
FAQ
What did Treasury Secretary Bessent say about the CLARITY Act on July 21?
Treasury Secretary Scott Bessent stated July 21 that the CLARITY Act has reached the '1-yard line,' indicating the digital asset market structure bill is nearly finished after months of negotiation. Senate Banking Committee member Kevin Cramer separately told Fox Business that lawmakers are 'almost there' on the bill.
Why are progressive groups criticizing Senator Gillibrand over the CLARITY Act?
Three progressive groups—Indivisible, Demand Progress, and the Revolving Door Project—sent a letter criticizing Senator Kirsten Gillibrand's role in brokering ethics terms for the CLARITY Act. The groups argued her involvement undermines efforts to hold the Trump administration accountable for corruption and tied her dealmaking to complaints about her fundraising ties to the cryptocurrency industry.
How did Bitcoin and Coinbase react to Bessent's comments?
Bitcoin rose approximately 2.5% toward $67,000 following Bessent's July 21 comments before retreating to $66,000. Coinbase Global shares jumped as much as 13%, indicating investors are pricing in regulatory clarity as a near-term catalyst for the cryptocurrency sector.
