CLARITY Act Showdown: Bill Hagerty Pushes Senate Vote Before Midterm Politics Take Over

• Sen. Bill Hagerty pushed for a Senate floor vote on the CLARITY Act, calling on lawmakers to test where Democrats stand on the bill.
• Hagerty raised the alarm that U.S. leadership on digital asset standards is at risk, and said the CLARITY Act should build on the stablecoin framework from the GENIUS Act.
• The push comes as industry pressure mounts, with Coinbase CEO Brian Armstrong recently saying that most Americans support a comprehensive crypto law.

U.S. Senator Bill Hagerty (R-TENN) on Tuesday called for a vote on the Senate floor on the Digital Market Asset Clarity Act, or the CLARITY Act, saying the crypto market-structure bill should advance so lawmakers can see where Democrats stand.

“I think we ought to just put it to a vote on the floor of the United States Senate and see where the Democrats are,” Hagerty said on Fox Business’ Mornings with Maria. The Tennessee Republican argued that the U.S. could not afford to lose ground in digital assets. "There's no way that we can allow the United States to fall behind in the digital assets arena," he said. "Everything is moving digital around the world."

GENIUS Act Follow-Up

The bill was a follow-up to the GENIUS Act, the stablecoin law Hagerty said was a major step toward keeping the digital dollar dominant worldwide, but the market still needed a broader framework. He questioned whether the chamber could pass the bill with Democratic support before the 2026 elections, asking if Democrats were “going to let midterm politics get in the way.”

Hagerty had made a similar case last month, calling the CLARITY Act the digital-asset sequel to the stablecoin law. "It has been transformative to see what the GENIUS Act has done to the stablecoin arena," he said at the time, adding the right time to act was "right now."

Midterm Politics In Focus

Fears about midterm campaigning were echoed by House Majority Whip Tom Emmer (R-MINN), who said Democratic leaders were trying to derail the political landscape. “Whether it’s Chuck Schumer, Hakeem Jeffries, their goal is to create chaos going into the midterms,” Emmer said on Tuesday.

He further added that, “​​If the government shuts down, it is because Democrats want the government to shut down, and Republicans and Donald Trump are going to make sure that doesn't happen.”

The Ethics Standoff

The comments come as the CLARITY Act remains stalled over ethics provisions, with the fight focused on how the rules would be enforced. Senate Republicans proposed language prohibiting federal officials from issuing or sponsoring digital materials and leaving enforcement to the Department of Justice (DOJ). Democrats have sought to allow state attorneys general to challenge DOJ inaction. The bill has yet to be added to the Senate floor schedule, leaving lawmakers with a shrinking window of time before the August recess.

Coinbase (COIN) and Circle (CRCL) are two firms that stand to benefit most from the CLARITY Act. COIN stock was up over 3% during midday trading hours. On Stocktwits, the retail sentiment around COIN remained in the ‘bullish’ zone, while chatter around it stayed at ‘high’ levels over the past day. 

On the other hand, CRCL stock was up over 4% during midday trade. On Stocktwits, the retail sentiment around CRCL moved to ‘neutral’ from the ‘bearish’ zone, while chatter around it stayed at ‘normal’ levels over the past day.

Read also: Wells Fargo, BNY Double Down On Digital Assets As Banks Move Beyond Crypto Custody Into Payments, Staking

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