The July 4 deadline for passage of the CLARITY Act appears likely to expire without approval. It’s been almost a year since the US House of Representatives passed the bill in July 2025.
Since then, he has faced numerous obstacles in Congress. This includes the stablecoin industry’s opposition to the awards and lawmakers’ ethical concerns. Interestingly, the current delay is due to the bill now being used as leverage by US President Donald Trump in larger negotiations.
Trump’s move sent shockwaves
According to the latest update, President Trump has canceled the signing ceremony of the 21st Century Housing Highway Act.
The bill included a ban on central bank digital currency (CBDC) and was supported by parties in both houses of Congress. In March, Trump said he would “not sign any more bills” until Republicans in Congress passed the RELIEVE America Act.
This created a scheduling crunch in the Senate and directly limited the chances of passing the CLARITY Act before the August recess.
Senators hopeful about CLARITY Act
Although Trump withdrew, Senator Tim Scott expressed his support for advancing the bill as soon as possible.
That pressure also comes from the fact that Republicans on the Senate Banking Committee have already introduced a bipartisan proposal.
Taken together, the urgency stems from concerns that increasing regulatory uncertainty could push the crypto ecosystem towards countries with more defined legal systems. That’s why Scott argues that the Senate must act quickly to pass the legislation.
Is the July 4th deadline realistic?
However, the bill could also lose its validity if Republicans fail to get the required sixty votes before the Senate recesses in August. Congressional priorities are likely to shift as many legislators focus on re-election campaigns. This would delay consideration of the CLARITY Act until the next session of Congress in 2027.
Galaxy Research lowered its outlook on the CLARITY Act from 60% to 50%. This is in sharp contrast to early June, when optimism was high even in the White House that the crypto market structure bill would be passed by its original July 4 deadline.
Final Summary
- Donald Trump canceled the signing ceremony of the 21st Century Housing Trail Act.
- With this blocker, the July 4 deadline for passage of the CLARITY Act looks risky.
