Senate Majority Leader John Thune (R-S.D.) confirmed that the Senate will not vote on the Clarity Act before its August recess, pushing the crypto market structure bill into September after Democrats withheld the consent needed to bring it to the floor. Politico first reported that Republican leaders expected to leave Washington without taking up the bill.
Republican leaders were unable to secure the agreement needed to fit the Digital Asset Market Clarity Act into the Senate’s final days before the break, while Democrats declined to provide it as negotiations continued. “The Dems are insistent on no Clarity vote. Anyway, I worked with sponsors of the bill,” Thune said. The Senate had only two days left to advance the legislation before lawmakers left for the summer recess.
Clarity Act Faces A Crowded Senate Calendar
With no agreement in place, the Clarity Act gave way to other legislation already lined up for votes. Thune scheduled votes on a continuing resolution to fund the government through the midterms, a Russia sanctions bill named after the late Senator Lindsey Graham, and several nominations. Each received the time agreement that the Clarity Act could not secure.
The Senate is scheduled to return on September 14, leaving lawmakers roughly three weeks to address the Clarity Act and other unfinished business before attention shifts toward the November midterms. This gives the bill a narrow window to move forward, although Thune indicated it would be among the first items considered when the Senate returns.
“Senator [Cynthia Lummis] was great, and we’re getting that queued up first thing when we come back,” Thune said.
The bill still faces a difficult path in September, with Republicans holding 53 of the Senate’s 100 seats and therefore needing Democratic support to reach the 60 votes required to overcome a filibuster. Some Republicans, including Josh Hawley and Jerry Moran, have also raised objections to the legislation in its current form, leaving uncertainty over whether it can secure even 50 votes. If the Senate passes the bill, it would still need another vote in the House before it could reach President Donald Trump’s desk.
Stablecoins Remain A Key Sticking Point
Much of the technical work around the bill has been completed, leaving several political disputes as the main obstacles to a Senate vote. The legislation cleared the Senate Banking and Agriculture Committees separately, but lawmakers remain divided over provisions covering President Donald Trump’s crypto interests.
Stablecoin rewards remain another area of disagreement, with crypto companies pushing for yield-like incentives while banks warn that such products could pull deposits away from the traditional financial system. Coinbase has repeatedly declined to back the bill over language that would bar exchanges from offering interest-like rewards on stablecoin holdings. Lawmakers also remain divided over whether the bill gives regulators and law enforcement enough authority to address illicit activity involving digital assets.
Despite the Senate delay, regulators have continued advancing the broader crypto regulatory framework. Under Chairman Paul Atkins, the SEC has worked with the CFTC on a joint interpretation while separately launching Project Crypto, an initiative focused on developing a clearer regulatory framework for digital assets.