After 11 months of negotiations, the Digital CLARITY Act now sits closer to the finish line than ever. The crypto regulatory framework has broad support. Lawmakers have largely resolved the SEC-CFTC jurisdictional split, developer protections, and stablecoin rules.
Crypto commentator BankXRP (@BankXRP) highlighted this dynamic on X. He pointed to a Fox News interview with Senator Cynthia Lummis as evidence the bill’s fate now rests on a fight that has nothing to do with the crypto framework.
🇺🇸 Senator Cynthia Lummis says the ethics debate not the crypto framework is what's holding the bill back.
After 11 months of negotiations, she's urging Congress to move forward and deliver the regulatory clarity the digital asset industry has been waiting for.#Crypto… https://t.co/AXmucR9Xq3 pic.twitter.com/i0X2qPPeea
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) July 23, 2026
The Debate Has Shifted
Lummis confirmed the ethics provision is the obstacle. Democrats pushed to let state attorneys general sue elected officials under the clause. She said senators rejected it because it would expose every member of Congress, every senator, and every federal judge to litigation from AGs in other states. Lummis stressed the provision is not designed around one person and should serve all three branches of government fairly over time.
The new draft of the bill shows that President Trump agreed to either place his assets in a blind trust or divest from digital asset holdings and companies deriving revenue from them.
Democrats still consider that insufficient. “It’s hard for me to see it right now,” Lummis said, “because they’re so focused on getting a pound of flesh from President Trump.” She confirmed Senator Tom Tillis continues working with Democrats to find a path forward on the ethics language.
The August Deadline
The Senate leaves for its summer recess in early August. If they don’t vote on the CLARITY Act before then, the bill loses momentum for the remainder of 2026, as lawmakers shift focus toward November’s midterm elections. There is no realistic fallback window, and Lummis previously suggested that this delay could extend as far as 2030.
BankXRP’s post reflects the frustration building across the digital asset community. The regulatory framework is ready. The holdup is a political dispute over ethics language about how aggressively it targets the sitting president.
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What’s Next for XRP?
XRP sits in a direct line of benefit if the bill passes. The CLARITY Act establishes the SEC-CFTC taxonomy that determines how digital assets are classified and regulated. Clearer classification reduces legal uncertainty for assets like XRP that have faced regulatory scrutiny.
Institutional participation, exchange listings, and product development all expand under a settled legal regime. XRP is already classified as a commodity, and the CLARITY Act will write that into law. All problems surrounding the framework are resolved, and settling the ethics debate and passing the bill could completely transform the crypto space.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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