White House Pushes CLARITY Act Toward July Timeline as Senate Negotiations Advance

The White House is accelerating efforts to move the Digital Asset Market Clarity Act through Congress by July 4, intensifying negotiations around U.S. crypto market structure legislation as lawmakers seek to finalize federal rules for digital assets before the 2026 midterm cycle.

Speaking at Consensus in Miami, White House digital-assets adviser Patrick Witt said the administration views the compressed timeline as achievable despite narrowing legislative room for compromise. The push comes as Senate discussions continue around stablecoin yield provisions and conflict-of-interest language that previously stalled momentum behind the bill.

“There’s not a lot of slack left in the rope right now,” Witt said during the event. “But it is an achievable timeline.”

The latest negotiations follow a compromise introduced in early May by Thom Tillis and Angela Alsobrooks on stablecoin-yield provisions. The proposal would prohibit stablecoins from offering yield comparable to bank deposits while still permitting certain consumer rewards linked to spending activity.

According to Witt, the White House facilitated discussions between banks and crypto firms before senators finalized the compromise language independently. He described the outcome as a balance that neither side fully favored.

“Crypto is unhappy, banks are unhappy, but they’re both about equally unhappy,” Witt said. “And so we know that we got the right compromise.”

Witt added that the administration considers the stablecoin-yield debate effectively resolved, shifting attention toward finalizing conflict-of-interest provisions that have divided Democrats and administration officials.

The White House is reportedly seeking rules that apply uniformly across federal officeholders rather than measures targeting specific individuals or families. Witt said negotiations remain active but expressed optimism that an agreement could be reached.

The CLARITY Act seeks to establish a federal framework governing digital assets and market structure in the United States, including jurisdictional boundaries between regulators overseeing crypto markets. The legislation previously received bipartisan support in the House before encountering delays in the Senate over stablecoin-related concerns.

Earlier the same day, Kirsten Gillibrand predicted the legislation could reach the president’s desk by the first week of August, slightly beyond the White House’s July target.

Witt framed the urgency around broader geopolitical and financial competitiveness concerns, arguing that delayed action could allow other jurisdictions to shape global standards for digital asset regulation.

“If we’re not setting the standard, if we’re not writing the rules, then we are going to be a rule follower,” Witt said, adding that the U.S. risks following frameworks established elsewhere, including by China.

He also linked digital asset regulation to the broader position of the United States in global capital markets, describing financial leadership as a component underpinning U.S. economic influence internationally.

Alongside the CLARITY Act discussions, Witt addressed implementation timelines for the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the stablecoin issuer legislation passed last year. Treasury Department rulemaking, alongside work by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, is approaching a one-year July deadline.

“These are complicated issues,” Witt said, citing Administrative Procedure Act requirements and the volume of industry feedback received during consultations.

The administration continues to frame the legislation as part of President Donald Trump’s broader effort to position the United States as a global hub for digital assets.

Separately, Zach Witkoff, CEO of World Liberty Financial, voiced support for the legislation during an interview with FOX Business, arguing that concerns from traditional banks regarding stablecoin-related deposit flight have not materialized despite sector growth.

“You haven’t seen it at all over the past year, and that’s all while stablecoins have been growing,” Witkoff said.

He pointed to banks that have expanded relationships with crypto firms as evidence that some institutions view stablecoins and digital asset infrastructure as a potential growth opportunity rather than a competitive threat.

The renewed legislative momentum follows recent comments from Tim Scott, who said he hopes to hold a Senate markup on the CLARITY Act this month and bring the legislation to the Senate floor by June or July.

The outcome of the negotiations could shape the next phase of U.S. digital asset regulation, particularly as lawmakers seek to establish clearer rules for stablecoins, token classification, and crypto market oversight amid increasing institutional participation in the sector.