The U.S. Senate is set to resume negotiations on the "Clarity Act" next week, with the aim of passing the legislation before the August recess and upcoming midterm elections. The House passed its version last year, and the Senate Banking and Agriculture Committees have each approved their own versions. Legislative counsel are currently working to merge these texts, with a new draft expected as early as next week. Key challenges include the non-custodial developer safe harbor provision, which is supported by the crypto industry but opposed by law enforcement and Catholic leaders, and ethics provisions that demand restrictions on the president and lawmakers profiting from digital assets. A new 70-page section focusing on consumer protection has been added at the request of Democrats. Senators Wyden and Warren have expressed concerns over Trump's financial disclosures, suggesting they may influence crypto legislation. The bill faces competition for floor time with other priority legislation, such as the National Defense Authorization Act.