The CLARITY Act’s 11th-Hour Push (and the SEC’s Backup Plan)

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This is coming down to the wire.

We’ve been talking CLARITY Act for the last three issues of Chain of Thought. For those who need a catch-up, check out The Market Is Primed For CLARITY and CLARITY Text Just Dropped… Here’s Where Everybody Sits to get all caught up.

Each helps frame what is taking place with the digital asset market framework bill called the CLARITY Act. We’ve been homing in on this piece of legislation in the final stretch. Updates are happening by the hour. And the verdict is truly up in the air still.

Nobody who’s following this closely can say with 100% certainty what the outcome will be.

The final text was released last Wednesday. In the days that followed, we got a lay of the land where everybody stood. The main issue now is getting the bill to the floor for a vote.

Don’t get me wrong – getting 60 votes will be a nail-biter. But in order to get the 60, the Senate will need to bring the bill to a formal vote and force each elected official to state their stance on the public record.

This public vote is the difference maker because crypto political action committees are no joke. They are the biggest force in Washington, D.C., today. Voting “nay” is painting a target on your back.

But the path to a vote is not easy. There are a lot of priorities on the Senate’s agenda. Senate Majority Leader Thune has to hash out which priorities need addressing before the Senate recess begins on August 7.

This date has felt like a deadline to get this bill done before the midterm elections.

Over the weekend, we didn’t see much activity occur. We knew updated text as it relates to the ethics language in the bill was in the works. It seemed like everything and everyone was simply holding their breath until Monday.

Yet this week has brought up a few new wrinkles in the ongoing drama. To say the least, the pressure has only grown to get this done.

SEC’s Plan B for Crypto Regulation

The Securities and Exchange Commission (SEC)  is very adamant about fulfilling on Project Crypto. It’s an initiative that the White House is pushing, and several agencies are coordinating their activities to bring finance onchain.

We covered in How to Be Bullish Without the CLARITY Act how the SEC and other agencies have been very proactive in releasing guidance, rules, and letters to give the industry what it needs so it can continue innovating without fear.

The Chairman of the SEC, Paul Atkins, went a step further when speaking to CNBC on air yesterday. He said his agency is “ready, willing, and able to come out with rules that address the same issues as CLARITY.”

Source: X.com @SECPaulSAtkins

It was a message to the public that even if CLARITY doesn’t get the votes it needs to pass, crypto industry guidance will still happen.

To be fair to Atkins and the SEC, this has been their public stance since March 2026, when they first released the Token Taxonomy. That guidance classified which cryptocurrencies are commodities vs. securities.

The SEC has not issued rules in the CLARITY Act only because it prefers Congress to pass it. This has to do with the subject of permanence. A bill that’s signed into law is codified. It’s harder to overturn once it’s passed by Congress.

So this sound bite from the SEC chairman has the look of a public Plan B for the industry if Congress kicks the bill into 2027.

It’s not ideal, but it’s a practical way to let the industry move forward on tokenizing stocks. The race between Robinhood, Depository Trust and Clearing Corporation (DTCC), New York Stock Exchange, Nasdaq, Ondo Finance, and other players is growing in intensity.

Lack of proper guidance at this point would be negligent. The value of real-world assets onchain now exceeds $32 billion – not including stablecoins. That’s simply equities, indices, private equity, real estate, and several other sectors.

The amount of stocks tokenized onchain is already around $2 billion – an amount that grew 100% in the last three months. This trend is not slowing down.

The SEC and Commodity Futures Trading Commission (CFTC) doing nothing if Congress does not pass the CLARITY ACT would ignore reality. So the SEC wants to not just address it but ensure it’s done with proper guidance.

That’s a responsible approach.

So here we are at the 11th hour, and we’re now seeing groups on Wall Street backing the bill. It’s no longer just digital asset companies and the administration. It’s BlackRock, Charles Schwab, Fidelity, Goldman Sachs, and Franklin Templeton. Each has now come out in support of CLARITY. These entities represent more than $35 trillion in assets under management.

Simultaneously, CLARITY has support from the Consumer Technology Association and America’s Credit Unions, along with all 50 state credit union leagues.

The endorsements are building. The plan of action in the event the bill doesn’t pass is forming.

We’re getting closer to a crescendo. Voting against this bill would draw incredible backlash in the months to come as the industry grows, the SEC issues waves of guidance, and Trump continues to generate profits from his close ties to the industry.

This is shaping up to be political suicide for pro-crypto Democrats who are on the fence or up for re-election in November.

Yet despite all this positive momentum, the question remains: Will the bill get to the floor?

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The Ethics Deal Holding Up the CLARITY Act

For longtime readers of Chain of Thought, we’ve mentioned that two concessions will likely happen to get CLARITY over the finish line. Both are materializing this week.

Democrats want the White House to fill the empty seats at the SEC and CFTC. Specifically, they want somebody from their political corner to fill the vacancy to create a more politically balanced agency.

Holding those vacancies has been part of the White House’s negotiation tactic. President Trump and the White House won’t jeopardize Project Crypto’s progress at the SEC and CFTC unless the act passes. That’s because if the act doesn’t pass, they can continue to implement the rules of the road as they desire.

So the deal here seems to be that once the Democrats help pass the bill, they get their seats filled. We are getting word that Chuck Schumer has gone ahead and put forward nominees for the SEC and CFTC. The names are not public to help avoid public scrutiny.

This move hints at progress being made so the bill can get closer to hitting the floor.

That progress is in ethics language. It was always going to come down to ethics language. And it’s being reported that Senators Tillis, Lummis, Gallego, and others are finalizing a new deal.

The deal is said to give state Attorneys General the ability to sue the Department of Justice for failure to enforce ethics violations.

There are other items like blind trusts and divesting assets, among others. This is a compromise between what the Democrats wanted (state Attorneys General going after the President for ethics violations) and what the Republicans want (enforcement by the Dept. of Justice only).

This feels like the compromise we’ve been waiting for – the one that will get many of the pro-crypto Democrats from a no to a yes.

That is all to say, it feels like we’re about to see Senator Thune make the push to get the bill to the floor next week. And in true Trump fashion, the president is trying to keep the Senate in D.C. until they finish the agenda items they have on their desk.

The fireworks look ready to start flying next week.

We’ll continue to monitor and discuss the CLARITY Act as we get more news.

Your Pulse on Crypto,

Ben Lilly
Editor, Chain of Thought