Latest CLARITY Act Update for XRP Holders

The progress of the CLARITY Act remains one of the most closely watched developments for the U.S. digital asset industry, with many XRP holders following every legislative update for signs of greater regulatory certainty.

Although Congress has entered a two-week recess, recent commentary suggests negotiations are continuing behind the scenes as lawmakers work to resolve several outstanding issues before the bill returns to the Senate floor.

Crypto commentator X Finance Bull recently summarized the latest developments shared by journalist Eleanor Terrett, explaining why the coming weeks could prove important despite the temporary slowdown in public legislative activity.

Congress Recesses, but CLARITY Act Negotiations Continue

According to X Finance Bull’s tweet, Congress will remain in recess until July 13, reducing the flow of legislative news from Capitol Hill. However, the commentator stressed that negotiations are expected to continue throughout the break as lawmakers, congressional staff, administration officials, and industry participants attempt to narrow remaining differences.

Referencing Eleanor Terrett’s latest update, X Finance Bull explained that Senate Republicans have renewed their urgency to move the CLARITY Act forward.

Congress is officially on recess until July 13, so the news flow slows for two weeks. But behind the quiet, a lot is moving.

That increased focus follows recent developments surrounding a bipartisan housing bill after President Donald Trump indicated he would not sign it until Congress passed separate voter-identification legislation. The episode highlighted how limited Senate floor time has become and reinforced the need to advance priority legislation before the legislative calendar becomes even tighter.

The commentator noted that Senate Majority Leader John Thune has publicly maintained that passing the CLARITY Act remains a priority while acknowledging that lawmakers are running short on time to resolve several unresolved provisions before a vote can be scheduled.

Key Issues Still Await Resolution

X Finance Bull explained that several significant issues remain under negotiation before the legislation can proceed.

The most prominent topic involves an ethics framework related to President Trump’s cryptocurrency businesses. According to Terrett, Democratic Senators Ruben Gallego and Angela Alsobrooks have indicated that their continued support depends on whether the final legislation contains ethics provisions they consider sufficiently robust.

Beyond the ethics debate, negotiators are also working through the Banking Regulatory Clarity Act (BRCA), which has drawn opposition from several law enforcement organizations and other groups that argue certain language could complicate efforts to combat criminal activity involving digital assets.

The merged legislative text between the Senate Banking and Agriculture Committees also remains unfinished. Outstanding discussions reportedly include state preemption, exchange conflict-of-interest rules, affiliate trading provisions, and continued pressure from banking groups regarding stablecoin yield provisions.

According to the update, lawmakers are expected to exchange draft language during the congressional recess to resolve these remaining differences before lawmakers return to Washington.

Timeline Remains Tight Despite Optimism

Looking ahead, X Finance Bull said Thune has suggested that a Senate vote on the CLARITY Act could take place during the week of July 20 or shortly afterward, following consideration of the annual defense authorization bill.

The commentator also highlighted differing views regarding the bill’s chances this year. Galaxy Digital Head of Research Alex Thorn reportedly reduced his estimated probability of passage in 2026 from 60% to 50%, noting the shrinking legislative calendar, the absence of a scheduled floor vote, and unresolved policy questions.

However, Thorn also noted that a 50% probability remains relatively favorable for legislation of this scale and suggested that visible progress during negotiations could quickly improve those odds.

For XRP holders and the broader digital asset community, the next several weeks may therefore prove critical. While Congress remains out of session, negotiations continue behind closed doors, and any meaningful breakthrough before lawmakers return could significantly improve the prospects for one of the cryptocurrency industry’s most closely watched pieces of legislation.