President Donald Trump has convened key Republican senators at the White House as Ripple warned that rejecting the CLARITY Act would preserve regulatory gaps linked to the FTX collapse.
Summary
- Trump will meet Republican senators to address disputes holding up the CLARITY Act.
- Ripple warned that rejecting the bill would leave major crypto regulatory gaps open.
- Polymarket places the bill’s chance of becoming law in 2026 at 36%.
According to Politico, Trump is scheduled to meet several Republican senators on Thursday to discuss the crypto market structure bill and the remaining work needed to secure a Senate vote.
Senator Bernie Moreno told the publication that lawmakers would brief Trump on the legislation and “its path to success.” A Senate Republican aide also confirmed that Senator Cynthia Lummis, a leading supporter of crypto legislation, would attend the meeting.
“We’ll be talking about the entirety of the bill. I mean, obviously the president’s been very engaged in this bill,” Moreno told Politico. “He’s the one who’s really driven the innovation that I think will pay dividends.”
Republican lawmakers are seeking to pass the CLARITY Act before Congress leaves Washington for the August recess. According to Politico, several lawmakers view the current work period as their best chance to move the measure before campaigning for the midterm elections takes up more of the Senate’s schedule.
Ethics provisions remain a key source of disagreement. Senator Thom Tillis expressed hope that lawmakers and the White House could settle the dispute within days.
“I’m hoping that we can come up with some agreement by the end of this week,” Tillis said.
Ripple warns regulatory gaps will remain open
As negotiations continue in Washington, Ripple chief legal officer Stuart Alderoty has urged lawmakers to support the legislation, arguing that a failed vote would leave the crypto industry exposed to misconduct under the existing system.
Alderoty linked his warning to the collapse of FTX, which left customers unable to access billions of dollars held on the exchange.
“We’ve seen this movie. Let’s not watch the sequel,” Alderoty wrote.
Lauren Belive, Ripple’s global co-head of public policy and government, also argued that lawmakers have yet to close the loopholes that contributed to past crypto failures.
“The same regulatory gaps that let bad actors like FTX collapse and wipe out customer funds are still wide open today.”
Under the bill, authority over the crypto market would be divided between the Commodity Futures Trading Commission and the Securities and Exchange Commission. Ripple maintains that the framework would clarify each agency’s role and introduce oversight before qualifying digital assets reach the market.
Political odds fall as the Senate deadline tightens
Doubts about the bill’s prospects have increased on prediction markets despite the White House talks. Polymarket traders have lowered the probability of the CLARITY Act becoming law in 2026 to about 41%.
Negotiations over ethics rules and the limited number of legislative days before the August recess have weighed on those odds. However, the planned White House meeting indicates that Trump and Senate Republicans are still working to resolve the remaining disputes before the window closes.
Separately, the House Financial Services Committee is scheduled to hold a July 17 hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation.” According to the committee’s description, the session will examine how the legislation could support U.S. leadership in blockchain technology and digital assets.
The committee is also expected to discuss the American Reserve Modernization Act, which concerns the proposed Strategic Bitcoin Reserve. Witnesses will provide views on the measures as Senate Republicans continue their push for a floor vote before the recess.
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