Over 200 Crypto Firms Urge Senate to Vote on CLARITY Act Before Midterms

More than 200 crypto companies and industry organizations have called on the US Senate to pass the CLARITY Act, warning that legislative delays could cause the bill to miss a critical window before the November midterm elections. In a letter released Monday by crypto advocacy group Stand With Crypto, the industry coalition urged Senate Majority Leader John Thune and Minority Leader Chuck Schumer to bring the bill to the Senate floor without delay.

The push comes as momentum from the Senate Banking Committee’s approval last month faces the risk of stalling entirely. Industry leaders argue that the Senate should capitalize on months of bipartisan negotiation work and give members the opportunity to advance what they describe as essential market structure legislation for digital assets.

The CLARITY Act would establish how the Securities and Exchange Commission and the Commodity Futures Trading Commission regulate cryptocurrency. However, the bill has encountered multiple obstacles this year as lawmakers and industry groups have disagreed over key provisions. This follows a pattern seen in related coverage of US banking groups challenging CLARITY Act stablecoin provisions, which cite deposit protection concerns.

Banking groups have pushed for language banning platforms from offering stablecoin yields, while the crypto industry has lobbied to include protections for developers of decentralized platforms. These competing interests have sparked months of negotiations between the groups, creating bottlenecks in the legislative process.

See also: US Banking Groups Challenge CLARITY Act Stablecoin Provisions, Cite Deposit Protection Concerns

The letter was signed by four major crypto lobby organizations: Stand With Crypto, The Digital Chamber, the Blockchain Association, and the Crypto Council for Innovation. These groups collectively represent hundreds of companies across the digital asset ecosystem.

According to the signatories, the CLARITY Act would keep crypto jobs, investment, and market activity within the United States while positioning the country as a global leader in digital asset innovation. The letter emphasized that digital asset markets are global and growing, making regulatory clarity essential for American competitiveness.

“The question before Congress is whether that future will be built in the United States under U.S. law, U.S. oversight, and American values, or continue moving to offshore jurisdictions with less transparency, weaker consumer protections, and limited accountability,” the letter stated.

Time is running short for the bill’s passage. Galaxy Digital lowered its odds of the CLARITY Act passing in 2026 to 60% from 75% on Friday, citing the need for Senate approval before the August recess in late July. After that window closes, analysts believe the bill’s chances of passage this year effectively disappear.

The Senate has not yet scheduled floor time for the legislation ahead of the midterm elections. Both the Senate Agriculture and Banking Committees have passed their respective versions of the bill concerning commodities and securities laws, but these versions must be reconciled before the full Senate can debate and vote on unified legislation.

See also: Crypto Ranks Dead Last in U.S. Voters’ 2026 Midterm Priorities, CoinDesk Survey Finds

Lawmakers have flagged additional amendments around ethics and policing illicit finance as necessary for the bill to secure the 60 votes required to pass without prolonged debate. Senator Cynthia Lummis, who has championed the bill’s advancement, told CNBC on Wednesday that lawmakers are actively addressing these concerns to build broader support.

However, Galaxy Digital noted that it has not observed evidence showing that negotiations have advanced or that the contested provisions have been resolved. This uncertainty has contributed to the downward revision of passage odds.

The crypto industry’s push for Senate action reflects broader concerns about regulatory clarity in digital assets. According to CoinDesk, regulatory frameworks remain a top priority for the sector as it seeks to establish legitimacy and attract institutional investment.

The CLARITY Act represents one of the most significant legislative efforts to establish comprehensive crypto regulation in the United States. Its passage would mark a major milestone in bringing digital asset markets under formal federal oversight, though the path forward remains uncertain as the midterm elections approach.