The Senate publishes a unified text of the CLARITY Act

Senator Cynthia Lummis published on July 22, 2026 a unified text of the CLARITY Act. The proposal merged work from the Banking and Agriculture committees on SEC and CFTC powers, intermediaries, DeFi and bank deposits. It incorporated contested public-ethics provisions. It had not been approved by the full Senate nor was it law.

Why were there two pieces?

Regulation of crypto markets crosses jurisdictions. Banking oversees SEC-related matters, while Agriculture covers the CFTC. A comprehensive law needed to coordinate both texts to avoid contradictory obligations.

The House version had advanced in 2025. In May 2026, the Senate Banking Committee approved its part. The July text attempted to integrate the architecture before possible action by the full Senate.

Publishing a negotiated version is a political milestone, not a vote. Amendments, objections and conciliation could change it. No company could invoke its definitions as current law.

To move forward, the Senate needed to agree on debate time, overcome the applicable procedural majorities, and vote. If their version differed from the House, both chambers would have to approve identical text before sending it to the president.

Distribution between SEC and CFTC

The proposal sought to distinguish digital securities and digital commodities and create pathways for networks to mature. The SEC would retain authority over securities offerings and investment contracts; the CFTC would supervise digital commodity spot markets and registered dealers.

The classification did not depend only on the token. Fundraising, promises and control could place an offer under securities law ​​even if the asset was later traded as a commodity. Disclosures about the network and related persons would be key.

Exchanges with multiple assets may require coordinated registrations or frameworks. Custody, conflicts and segregation had to be adapted. The text did not eliminate anti-fraud or state laws without express provision.

DeFi and developers

The provisions on DeFi attempted to protect software development and self-custody without creating a vacuum for so-called decentralized intermediaries. Function and control remained central.

A developer who publishes code may present facts other than a company that operates interfaces, routes orders, collects commissions, and controls changes. Overly broad definitions can capture software; too narrow, allowing evasion.

The rules had to be coordinated with AML and sanctions, which do not disappear due to market classification. The market-structure bill did not resolve all financial obligations.

Public ethics and conflicts

The version incorporated restrictions on public office interests in digital assets. Its scope, exceptions and enforcement generated criticism. The issue could affect political viability as well as the technical distribution of powers.

An ethics rule needs to define beneficiaries, family members, trusts, and indirect assets. It must also provide for disclosure and sanctioning authority. A symbolic ban with broad exceptions may not resolve conflicts.

The debate showed that the crypto market is not just classification. Participation by public officials and promotion of projects can affect trust in supervision.

Stablecoin rewards and banking

Another controversy was the yield associated with stablecoins. The GENIUS Act had limited interest payments by issuers, but platforms could design rewards. The new text had to coordinate banking competition and limits.

Reward, interest and discount can produce equivalent effects. An effective standard analyzes the source and condition of payment. The marketing name does not avoid regulation.

Outlook from 2026

At the end of July and August 7, 2026, the text had not passed the full Senate nor had it become law. Ethics, DeFi and rewards controversies remained open. It must be cited as a proposal.

The unification brought two jurisdictions closer to a common framework, but also concentrated disagreements. For the sector, it serves to plan scenarios, not to replace current laws and guidelines.