CLARITY Act Update: Trump Expected to Sign Landmark Crypto Bill by Independence Day

The United States may be approaching a defining moment in the history of cryptocurrency regulation. Lawmakers in Washington are once again moving toward a long-awaited attempt to bring structure and clarity to the digital asset industry through the Digital Asset Market Clarity Act (CLARITY Act).

According to recent remarks from Republican Senator Bernie Moreno, there is growing confidence that the bill could clear Congress and reach President Donald Trump’s desk in time for a symbolic signing on July 4, 2026. That date, US Independence Day, is increasingly being viewed as a potential milestone for what supporters describe as America’s “financial independence” in the digital era.

If enacted, the CLARITY Act would represent the most comprehensive overhaul of US crypto regulation to date, reshaping how digital assets are classified, traded, and supervised across federal agencies.

What the CLARITY Act Actually Does

At its core, the CLARITY Act is designed to resolve one of the most persistent and damaging problems in the US crypto industry: regulatory uncertainty. For years, companies have struggled with overlapping and sometimes contradictory enforcement actions from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The bill attempts to end this ambiguity by clearly dividing responsibilities between the two agencies. In simple terms, most cryptocurrencies would fall under the jurisdiction of the CFTC and be treated as commodities, while only specific offerings that meet strict legal criteria would be classified as securities under the SEC.

This distinction is not just technical. It determines whether a crypto project must follow the same rules as a stock offering or operate under a more flexible commodities framework. For startups, exchanges, and institutional investors, this clarity could significantly reduce legal risk and encourage more investment in the sector.

The legislation also introduces a formal process for digital assets to evolve over time. A token might initially be treated as a security during early fundraising phases but could later transition into a commodity once the network becomes decentralized enough. This lifecycle approach is one of the bill’s most innovative elements, aiming to reflect how blockchain projects actually develop in practice.

Why Lawmakers Are Pushing for It Now

Momentum behind the CLARITY Act has been building for years, but recent political shifts have accelerated its progress. The crypto industry has become a major lobbying force in Washington, arguing that the United States risks falling behind other jurisdictions such as the European Union, Singapore, and the United Arab Emirates if it does not establish clear rules.

Senator Bernie Moreno has emerged as one of the key voices pushing the bill forward in the Senate. He recently suggested that negotiations are entering their final stages and that lawmakers are now focused on resolving remaining disputes, particularly around stablecoin regulation and financial oversight.

His prediction that President Trump could sign the bill by July 4 reflects a broader sense of optimism among Republican lawmakers. It also signals confidence that bipartisan compromise is becoming more achievable after months of stalled discussions.

The Role of the Trump Administration

The political environment surrounding the CLARITY Act is unusual compared to earlier attempts at crypto legislation. President Donald Trump has positioned himself as more supportive of digital asset innovation than previous administrations, aligning with industry leaders who argue that excessive regulation has stifled growth in the United States.

His administration has already supported earlier crypto-related reforms, including legislation aimed at establishing clearer rules for stablecoins. This earlier progress has helped build a foundation for the broader market structure bill now moving through Congress.

If Trump does sign the CLARITY Act on or around July 4, it would carry significant symbolic weight. Independence Day has historically been used for major policy announcements that are framed as defining national achievements. In this context, crypto reform would be presented not just as financial regulation, but as a strategic step toward reinforcing American leadership in emerging technologies.

The Central Conflict: SEC vs CFTC

Much of the debate around the CLARITY Act revolves around jurisdictional control. The SEC has traditionally taken a stricter enforcement approach, treating many digital assets as securities. The CFTC, on the other hand, has argued that most cryptocurrencies function more like commodities and should be regulated as such.

This disagreement has led to years of legal uncertainty, with companies often unsure which rules apply to their operations. The CLARITY Act attempts to settle this by giving the CFTC primary authority over most digital assets while limiting the SEC’s role to clearly defined securities offerings.

Supporters say this structure would finally end what they call “regulation by enforcement,” where agencies set policy through lawsuits rather than clear legislative rules. Critics, however, warn that shifting too much authority to the CFTC could weaken investor protections in certain areas of the market.

Stablecoins and the Most Contested Issue

While the overall structure of the bill has gained traction, stablecoins remain one of the most contentious issues in negotiations. These digital assets, which are typically pegged to the US dollar, have become a major part of the crypto economy, especially in trading and payments.

The main debate centers on whether stablecoin holders should be allowed to earn yield or interest-like rewards. Banking institutions have strongly opposed such features, arguing that they could compete directly with traditional savings accounts and undermine the banking system’s deposit base.

Crypto firms, however, argue that limiting yield would reduce innovation and prevent stablecoins from functioning as efficient financial tools. As a result, lawmakers have been working toward a compromise that restricts passive interest payments while still allowing limited incentives tied to platform usage.

This compromise has been critical in keeping the bill alive in the Senate and may ultimately determine whether it reaches the president’s desk.

Industry Reaction: Cautious Optimism

The crypto industry has broadly welcomed the CLARITY Act as a long-overdue step toward regulatory certainty. For years, companies have complained that unclear rules have pushed innovation overseas and discouraged institutional investment in US-based blockchain projects.

If the bill becomes law, it is expected to unlock significant capital inflows into the market, particularly from traditional financial institutions that have so far been hesitant to engage fully with digital assets. Major cryptocurrencies like Bitcoin and Ethereum could benefit from increased legitimacy and reduced regulatory risk.

At the same time, some decentralized finance advocates have expressed concern that the bill could introduce new layers of compliance that may be difficult for smaller or fully decentralized projects to meet. They warn that while clarity is valuable, overly rigid frameworks could unintentionally centralize parts of the crypto ecosystem.

Remaining Political and Legislative Risks

Despite growing optimism, the CLARITY Act is not yet guaranteed to pass. The Senate still needs to resolve several technical and political disagreements, and the legislative calendar remains tight ahead of the 2026 election cycle.

Banking industry lobbying also continues to exert influence over stablecoin provisions, and any breakdown in negotiations could delay or even derail the bill. Additionally, even if the Senate approves the legislation, final reconciliation with the House version could introduce further complications.

For now, the expectation of a July 4 signing remains aspirational rather than confirmed. However, the fact that such a timeline is being discussed at all signals how far the bill has progressed compared to previous failed attempts at crypto reform.

Global Implications

Beyond the United States, the CLARITY Act is being closely watched by regulators and financial institutions worldwide. Many countries have already begun developing their own digital asset frameworks, but a clear US standard could set the tone for global regulation.

If passed, the legislation would likely reinforce the dominance of dollar-backed stablecoins and encourage greater alignment between international regulatory systems and US standards. It could also strengthen the United States’ position as a hub for blockchain innovation at a time when competition from Asia and the Middle East is intensifying.

Conclusion: A Defining Moment Approaches

The CLARITY Act represents one of the most ambitious attempts yet to bring order to the rapidly evolving crypto industry. Senator Bernie Moreno’s expectation of a July 4 signing highlights growing political momentum, but also underscores how delicate the remaining negotiations are.

If Congress succeeds, the United States will not only establish its first comprehensive crypto market structure law but may also redefine its role in the global digital economy. If it fails, the industry is likely to remain in regulatory uncertainty for years to come.

Either way, the coming months will determine whether the CLARITY Act becomes a historic milestone-or another missed opportunity in the long struggle to regulate digital assets.

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