U.S. House Republicans are calling on the Senate to vote on cryptocurrency regulation legislation before the August recess, as questions mount over President Donald Trump’s involvement in digital asset ventures.
Representative French Hill, who chairs the House Financial Services Subcommittee on Digital Assets, urged the Senate to schedule a vote on the CLARITY Act in July. The bill aims to establish a regulatory framework for digital asset markets in the United States.
The push comes as lawmakers navigate ethics concerns surrounding Trump’s business interests in the cryptocurrency sector while serving as president. Hill argued that passing the legislation would create transparency measures to address such conflicts of interest.
What the CLARITY Act Proposes
The Clarifying Law Around Insurance of Retirement Yields Act, known as CLARITY, seeks to define which digital assets fall under securities regulation and which should be classified as commodities. The bill would establish a clear process for determining regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Under the proposed framework, digital assets would be evaluated based on specific criteria, including how they are marketed, whether they promise profits from the efforts of others, and the degree of decentralisation in their networks.
The legislation passed the House of Representatives in May with bipartisan support, though it faces a more uncertain path in the Senate, where Democrats hold a narrow majority.
Hill’s comments come amid ongoing scrutiny of Trump’s financial ties to cryptocurrency projects. The former president, who returned to office in January 2025, has maintained business interests in several digital asset ventures, including a non fungible token collection and what he has described as partnerships with blockchain companies.
Critics have raised questions about potential conflicts of interest, particularly as the administration weighs regulatory policy that could affect markets in which the president has financial stakes. The White House has not responded to requests for comment on how it plans to address these concerns.
Hill told reporters that the CLARITY Act would establish guardrails to prevent abuse regardless of which administration is in power. “This is about creating a transparent, rules based market that protects investors and prevents anyone from using their position for personal gain,” he said, according to statements reported by Bitcoin Magazine.
Senate Timeline Uncertain
While House Republicans are pushing for a July vote, Senate leadership has not committed to a timeline. The Senate Banking Committee, which has jurisdiction over the bill, has scheduled hearings on digital asset regulation but has not yet marked up the CLARITY Act.
Senator Sherrod Brown, who chairs the Banking Committee, has previously expressed concerns that cryptocurrency regulation could benefit wealthy investors at the expense of consumer protections. His office did not respond to questions about whether the committee plans to advance the bill before the August recess.
The Senate is scheduled to leave Washington for its summer break in early August and will not return until after Labour Day in September. If the CLARITY Act does not receive a vote before then, it would likely be delayed until the autumn legislative session.
The cryptocurrency industry has made regulatory clarity a top priority, arguing that the lack of clear rules has driven innovation and investment offshore to jurisdictions with more defined frameworks.