Sen. Jon Husted (R-OH) publicly endorsed the CLARITY Act in a post on X on July 28, stating the U.S. needs regulatory certainty to lead in digital assets. Galaxy Research cut the bill's 2026 passage odds to 30%, down from a prior 50% estimate, as the Senate faces a two-week window before its August recess. The endorsement comes as the 616-page Digital Asset Market Clarity Act remains stalled over ethics provisions that would restrict federal officials from issuing or sponsoring digital assets while in office.
Husted Calls for Clear Framework to Support Innovation
Husted, who was appointed to the U.S. Senate in 2025 to fill the Ohio seat vacated by Vice President JD Vance, wrote on X early Tuesday that the country needs regulatory certainty to stay competitive in the digital asset sector. He is one of a growing list of Republican senators publicly pressing colleagues to move the bill before Congress leaves for its summer recess. Husted stated: "If the U.S. is going to lead in digital assets, we need a framework that is clear, practical, and supports innovation and job creation here at home. That's why I support the CLARITY Act and will work to get it passed as soon as possible."
CLARITY Act Splits Regulatory Authority Between SEC and CFTC
The CLARITY Act, formally the Digital Asset Market Clarity Act, would create the first comprehensive federal framework for crypto oversight, splitting jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill sorts tokens into three categories, hands the CFTC exclusive authority over spot markets for digital commodities, and leaves the SEC in charge of assets that still resemble securities. The House approved its version 294-134 in July 2025, and the Senate Banking Committee advanced its own draft 15-9 in May 2026.
Ethics Provisions Block Bipartisan Support
Senator Cynthia Lummis released a revised version of the bill on July 22, merging language from the Banking and Agriculture committees into a single negotiating text. The draft would bar the president, vice president, members of Congress, federal judges and their spouses from issuing or sponsoring digital assets for compensation while in office through January 2029, and would require covered officials to divest crypto holdings or place them in a blind trust. Democrats argue the safeguards still are not strict enough, while Republicans have pushed for looser language. Galaxy Research head of research Alex Thorn cut the odds to 30%, down from a prior 50% call, pointing to the Senate's 60-vote threshold as the real obstacle and warning that supporters may not even have a simple majority in hand.
Senate Faces Two-Week Deadline Before August Recess
The Senate has roughly two weeks before its August recess to pass the bill. Lawmakers who track the legislation warn that missing that window could push a vote into the fall, when campaign season for the midterms typically crowds out complex legislative fights. The ethics language remains the single biggest sticking point separating the two parties, ahead of secondary disputes over stablecoin rewards provisions and anti-money laundering rules that negotiators are still fine-tuning inside the merged text.
Coinbase Supports Bill as Consumer Protection Advance
Coinbase Chief Policy Officer Faryar Shirzad called an earlier version of the merged bill "a dramatic advance in consumer protection and market integrity" when negotiators first released the combined text in mid-July. Industry has been broadly supportive of the direction.
FAQ
What did Sen. Jon Husted say about the CLARITY Act on July 28?
Sen. Jon Husted wrote on X on July 28 that the U.S. needs a framework that is clear, practical, and supports innovation and job creation to lead in digital assets, stating he supports the CLARITY Act and will work to get it passed as soon as possible.
Why did Galaxy Research cut the CLARITY Act's passage odds to 30%?
Galaxy Research cut the odds from 50% to 30% because the Senate's 60-vote threshold presents a real obstacle, and head of research Alex Thorn warned that supporters may not even have a simple majority in hand, let alone the votes needed to overcome a filibuster.
What ethics provisions are blocking bipartisan support for the CLARITY Act?
The draft would bar the president, vice president, members of Congress, federal judges and their spouses from issuing or sponsoring digital assets for compensation while in office through January 2029, and would require covered officials to divest crypto holdings or place them in a blind trust. Democrats argue the safeguards are not strict enough, while Republicans have pushed for looser language.
