The CLARITY Act is moving through one of its most consequential stretches yet. The bill, which cleared the Senate Banking Committee in May, now sits one step from a full Senate vote. Eleanor Terrett, a former Fox Business journalist, recently outlined the latest development on the matter.
Updated Text and Ethics Talks
Terrett reported that updated CLARITY Act text could drop soon. Industry sources told her that negotiators are also preparing for the bill to slip later in the week if ethics negotiations continue to stall.
She then noted that Senator Cynthia Lummis gave insight into those negotiations during an interview on Fox. Lummis suggested requiring public officials with crypto holdings to use blind trusts. She also said she plans to oppose a proposal that would allow state attorneys general to sue the Justice Department to enforce ethics rules.
In a Tuesday morning interview, @SenLummis offered some insight into what may be taking shape in those negotiations, including the possibility of requiring public officials with crypto holdings to use blind trusts.
She also said she plans to oppose a proposal that would allow…
— Eleanor Terrett (@EleanorTerrett) July 14, 2026
Banks Push Back on Stablecoin Yield
Terrett also noted that Senator Thom Tillis, a lead negotiator on the stablecoin yield compromise, floated “circuit-breaker language” that would allow federal regulators to intervene if widespread deposit flight to stablecoins occurred.
The stablecoin yield dispute has been the bill’s primary obstacle in the Senate, with banks arguing that yield-bearing stablecoins could draw deposits away from the traditional banking system. Tillis stated that if banks still oppose the bill after such a provision is included, their concerns about deposit flight may have been a red herring.
She then reported that the banking lobby renewed its public pushback. The American Bankers Association, ICBA, and 76 state banking associations sent a letter to Senate leadership arguing the stablecoin yield compromise does not go far enough.
Law Enforcement Divided
Terrett then covered the Federal Law Enforcement Officers Association’s response, which submitted a letter to the Senate Banking Committee supporting the CLARITY Act. The group recommended targeted changes to preserve federal investigative authorities and criminal liability standards.
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However, she reported that the National Sheriffs’ Association is now publicly opposing the bill. The group, which represents over 3,000 elected sheriffs, called cryptocurrency “the cartel currency of choice” in a video circulating online. Terrett noted some Democratic senators want law enforcement concerns addressed before they support the bill.
White House Loses Key Negotiator
Finally, Terrett revealed that the White House will lose its top CLARITY Act negotiator, Patrick Witt, next Friday. Witt departs for mandatory JAG training with the Georgia Army National Guard, reporting July 27 under military orders.
XRP holders are watching these events because a Senate floor vote before the August recess is widely seen as the last viable window before the campaign season effectively closes the legislative calendar. Crypto Council Deputy Director Harry Y. Jung is expected to assume Witt’s responsibilities.
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