The Senate won't vote on the Clarity Act before the August recess, pushing the crypto market structure bill to September. Majority Leader John Thune said Democrats insisted on no vote before lawmakers leave town, and Republicans are accusing them of stalling.
Why the delay matters
The Clarity Act cleared the House last year and has been the crypto industry's main hope for clear rules. But the Senate version has grown more contentious in recent months, with disagreements over stablecoin yield and ethics provisions. The bill started small and was beefed up over the past year, according to Senator Cynthia Lummis, who noted that Democrats were largely behind the expansion.
The latest draft, which began circulating in July, includes language that would ban government officials from promoting or profiting from crypto. That part has become a flashpoint.
Trump's stake and the ethics fight
President Donald Trump has pushed for the bill, saying the U.S. needs to beat China in both crypto and AI. In an interview with Punchbowl News, he said, “Crypto's a big deal” and argued that people are already paying with Bitcoin, “they don’t even know about cash anymore.”
But the president's own financial interests have become a sticking point. The Trump family has profited from the $TRUMP memecoin and World Liberty Financial, and Senator Elizabeth Warren claims the new legislation would benefit the president and his family. The White House and Trump have denied any conflicts of interest, and Trump pointed out that Democrats have also made money from stock trading.
Banking lobby chiefs and crypto exchanges remain at odds over stablecoin yield, which has kept the bill in a deadlock. Democrats also want more work on the ethics side.
Who backs the bill
Despite the partisan sniping, the Clarity Act has support from major financial institutions like Goldman Sachs and Fidelity, as well as law enforcement groups. The question is whether that coalition can hold together through September, when lawmakers return and the recess pressure is gone.
For now, the bill sits in limbo. The next concrete step is the September session, where Thune will have to decide whether to force a vote or let the debate drag on.
