The US Senate has temporarily set aside the cryptocurrency market clarity bill, further delaying a key industry policy push and reducing the available time on a packed legislative calendar.
On Monday, Majority Leader John Thune began pursuing a slate of nominees, with plans to move to a Russia sanctions bill on Tuesday evening, at which point he will start the cloture process. The complex Senate procedural steps for managing a bill involve multiple stages and waiting periods before a final vote typically occurs, and Senate rules generally limit the chamber to handling one contentious bill at a time. This means the Senate is unlikely to advance the Clarity Act until other matters are resolved or expire, which could take several days.
The Russia bill, which imposes sanctions on the country's leadership, has been dedicated to the late Senator Lindsey Graham, who supported the measure. Additionally, Graham's funeral services this week will occupy the Senate's attention on Tuesday and Wednesday in Washington, D.C., and South Carolina.
Conclusion: A clear vote is unlikely before next week—the final days before the Senate recesses for summer break on August 8. The controversial market structure bill is not yet ready for a vote, as both sides continue to seek a compromise on a contentious clause blocking a deal: a ban on senior government officials, including President Donald Trump, from endorsing crypto projects.
Thune's office said last week that his next floor priority would be the Russia legislation. Although the majority leader has also expressed a desire to consider the Clarity Act before the recess, he stated that leadership must "see where the votes are." At this stage of the Senate's agenda, every hour of debate time is a precious resource, and the debate over the Clarity Act still leaves several major unresolved issues—particularly the government ethics section, which was the focus of an event on Monday hosted by Democrats who oppose both the Clarity Act and the President's crypto activities.
Significant differences at this stage could narrow the chances of the Clarity Act becoming law in 2026, potentially creating uncertainty for the industry regarding the US regulatory timeline. If the legislation fails, the next best path to regulatory legitimacy lies in the advancing GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) and policy efforts by the Securities and Exchange Commission and the Commodity Futures Trading Commission.
In the Senate, the industry's best hope for now may be securing an initial push on its own cloture process before lawmakers head into recess. While a similar version of the Clarity Act has advanced in the House, the Senate has historically been the main bottleneck in the legislative process. In this case, the bill was initially stalled for months due to a debate between the crypto industry and bankers over the treatment of stablecoin yield, which was eventually resolved by a compromise limiting stablecoin reward programs to forms that would not resemble or compete with interest-bearing bank deposits. The debate then shifted to crypto restrictions on government officials.
Last week, a potential breakthrough emerged on the ethics section, with President Trump agreeing to accept provisions limiting his interactions with digital assets. While White House officials touted this unprecedented ethics restriction, Democrats quickly countered that the limits are insufficient to curb Trump's lucrative crypto empire. However, both sides agreed to continue dialogue. The House and Senate will return for a few weeks in September, but that will mark the end of available time in the legislative halls. After the November election, Congress will enter a so-called lame-duck session, where defeated and retiring lawmakers will serve their final weeks until the next Congress begins in January. The lame-duck session can sometimes produce legislative outcomes amid potentially chaotic, desperate dealmaking, though it may also lead to political gridlock.
Even if the Clarity Act passes the Senate, it must return to the House for another approval, and recent infighting among Republicans has hindered the progress of other bills. However, if the bill can successfully navigate both chambers of Congress, it will be sent to President Trump to sign into law. In recent weeks, the President has refused to sign a bipartisan housing bill unrelated to crypto, because he opposes all legislation unless lawmakers send him a bill requiring new voter ID requirements before the midterm elections. He has actively called for the completion of the Clarity Act, though it remains unclear whether it will be directly passed. Regardless, an approved bill would automatically become law after 10 consecutive days of presidential inaction.
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