The Senate's effort to pass the Digital Asset Market CLARITY Act is entering a critical phase, with lawmakers aiming for a floor vote as early as the week of July 20.

Senate negotiators are preparing a new Clarity Act draft as crypto market structure legislation faces a narrow July window and unresolved Democratic demands.

A merged CLARITY Act draft could drop as soon as next week, with a Senate floor vote eyed before the Aug. 7 recess deadline.