CLARITY Act Faces Make or Break June

Novogratz Sounds the Alarm on Senate Timing

Galaxy Digital CEO Mike Novogratz has drawn a hard line around June for the fate of the Digital Asset Market Clarity Act, the most significant piece of crypto market structure legislation to move through Congress in years. In a recent post on X, Novogratz summed up the sense of urgency bluntly, writing that June is "Clarity month" and that it is "literally now or never."

The crypto industry's primary goal in Washington took a major step forward when the Digital Asset Market Clarity Act cleared the Senate Banking Committee after a process that had been held up for four months. The committee approved the bill 15-9 in a bipartisan vote, advancing it to the next stage. But clearing committee is only one hurdle. The bill will need at least eight Democratic votes on the Senate floor, a threshold that remains far from guaranteed.

According to Brian Gardner, chief Washington policy strategist at a major wealth management and investment banking firm, the CLARITY Act probably needs to clear the Senate by the end of July, preferably in June, to pass in 2026. Senate Majority Leader John Thune told Republican lawmakers the chamber would not wrap up its reconciliation package this month, raising immediate questions about whether lawmakers would have time to push the CLARITY Act through before the August recess.

What Is at Stake and Who Is Pushing Back

The CLARITY Act, formally the Digital Asset Market Clarity Act, passed the House of Representatives in 2025 but has faced repeated setbacks in the Senate Banking Committee, with banks and stablecoin companies squabbling over how and when rewards can be paid on stablecoin balances. The bill is opposed by banks, unions, and law enforcement agencies, who argue that various provisions would hurt consumers and endanger financial systems.

Senator Cynthia Lummis has warned that the next opportunity for digital asset legislation, if this window closes, is likely to be 2030. She added that until then, developers remain exposed with no legal protections and law enforcement remains without the tools to hold bad actors accountable. Treasury Secretary Scott Bessent has also urged both chambers to advance the bill, with CLARITY Act approval odds on Polymarket reaching 60% following his statement.

The practical implication is that any Senate floor vote needs to happen before August 2026, when campaigning begins in earnest and the Senate calendar effectively closes for controversial votes. Galaxy Digital's own head of research, Alex Thorn, offered a more measured view, putting the current odds of passage in 2026 at 50%. Whether the Senate can find floor time for the bill amid competing budget and policy priorities will determine if crypto's long-awaited regulatory framework becomes law this year or gets pushed well into the next decade.

Sources:
CNBC: Crypto industry scores win as Clarity Act clears Senate committee
The Hill: Obstacles threaten success of Clarity Act in Senate
CoinDesk: Clarity Act clears U.S. Senate committee