The Senate has only two weeks remaining before the August recess, putting pressure on lawmakers to move the Clarity Act forward if they want the crypto regulation bill to pass before the deadline.

Senators have released a new version of the legislation that combines separate drafts from the Senate Banking and Agriculture Committees and includes an ethics provision for the first time. However, the bill still faces important political obstacles before it can become law.

The updated Digital Asset Market Clarity Act brings together the two committee versions and adds a provision designed to prevent senior government officials from issuing or promoting their own cryptocurrencies. The measure was introduced amid concerns related to President Donald Trump’s involvement in the crypto industry.

While the new draft represents a step forward, the path to passage remains uncertain. The biggest challenge is whether lawmakers can reach agreement on the ethics provision, leaving a very limited amount of time before the Senate breaks for recess.

The central question is whether the Clarity Act can pass this year. Although the legislation would create major changes to how federal agencies oversee digital assets, the main disagreement now is focused less on crypto regulation itself and more on the proposed ethics rules.

Democrats are pushing for stricter restrictions that would have a greater impact on Trump and the estimated $1.4 billion he earned from crypto-related activities last year. Republicans and the White House have opposed provisions they view as targeting the president.

The current ethics language, which has White House approval but has not gained support from Senate Democrats, would give Trump one year to sell certain assets or place his businesses into a blind trust. It would also assign enforcement responsibility to the Department of Justice.

Democrats have argued that they do not believe the Justice Department would pursue action against a sitting president and have raised concerns about provisions that would end once a new administration begins. They also object to rules that could allow Trump to continue benefiting from existing tokens connected to his name.

Supporters of the proposal, including Senator Cynthia Lummis, say the measure applies broadly to government officials and federal judges rather than targeting only Trump. White House adviser Patrick Witt and several crypto industry participants have described it as one of the most significant ethics commitments ever accepted by a U.S. president.

However, the issue remains politically sensitive ahead of the midterm elections. Democrats see Trump’s crypto earnings as a strong campaign issue, while negotiations over the ethics provision and other parts of the bill continue. Some Republicans have also expressed concerns about the current legislation.

Despite the disagreements, many industry participants believe there is still enough time for the Senate to pass the bill before the recess. Senate staff from both parties, crypto companies, and other stakeholders largely support advancing the legislation, though some lawmakers remain firmly opposed. Senator Elizabeth Warren has argued that the bill should not move forward, citing concerns over investor protections, national security, and Trump’s crypto ties.

The crypto industry continues to campaign for approval, arguing that the Clarity Act would provide clearer rules and establish protections for investors. Supporters say failing to pass the bill would leave the market without a comprehensive regulatory structure.

To meet the deadline, lawmakers will likely need to begin the formal Senate process with a motion to proceed early this week. If the motion is filed by Wednesday, there may still be enough time for a vote before the August 7 recess begins.

Once the process starts, the Senate could hold a cloture vote on the updated bill text. If that succeeds, another cloture vote would be needed before final passage.

Kristin Smith, president of the Solana Policy Institute, said approaching recess deadlines often create pressure for lawmakers to reach agreements.

Industry sources expect the motion to proceed could be filed Monday or Tuesday, with a possible vote later next week.

A 60-vote approval on the motion to proceed would indicate that lawmakers believe they are close to resolving major disagreements. However, it would not guarantee enough support for the later votes required to pass the bill.

The most likely timing for final cloture votes is during the Senate’s final week before recess, beginning August 3.

For the current schedule to remain possible, lawmakers may need to resolve the ethics dispute by July 30, according to people familiar with the discussions.

The Senate’s busy agenda could create additional delays. Along with the Clarity Act, lawmakers must consider nominations, including Jay Clayton’s nomination for Director of National Intelligence, a Russia-Iran sanctions package, and other urgent legislation.

No major hearings related to the bill are scheduled this week, meaning negotiations and Senate procedure will likely determine whether the Clarity Act moves forward.