U.S. Senate puts off crypto Clarity Act for now as it focuses limited bandwidth elsewhere
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-assisted summary based on the linked source. Verify market-moving details at the original publisher before acting.
The U.S. Senate has temporarily set aside consideration of the crypto Digital Asset Market Clarity Act to focus on other pressing legislative matters, specifically federal nominations and a sanctions bill targeting Russia. According to a schedule outlined by Senate Majority Leader John Thune, nominations began on Monday and the Russia sanctions bill is expected to move forward starting Tuesday night with its cloture process. Since Senate rules limit debate to one contested bill at a time and the chamber is also attending to the funeral of late Senator Lindsey Graham, the Clarity Act is unlikely to be addressed before the Senate’s summer recess beginning August 8.
While some preliminary Senate action on the Clarity Act could take place next week, the bill is not yet ready for a final vote due to ongoing disagreements, particularly about controversial ethics provisions that would ban senior government officials—including former President Donald Trump—from backing crypto projects. Although an ethics compromise was reportedly reached with Trump agreeing to restrictions on his crypto dealings, opposition Democrats argue the limits are insufficient. This ongoing debate hampers the bill’s progress and reduces the chances of the Clarity Act becoming law in 2026.
If the Clarity Act stalls, the crypto industry may instead look to regulatory efforts like the GENIUS Act on stablecoins and actions from the Securities and Exchange Commission and Commodity Futures Trading Commission. Even if the bill passes the Senate, it will need to be approved again by the House of Representatives, where intraparty conflicts have slowed other legislation. Finally, the bill would require the president’s signature to become law, although a president’s inaction for 10 days would automatically enact it. At present, the White House has called for completion of the Clarity Act but has taken a hard stance on other legislation until certain voter-identification demands are met.