President Trump this week urged the Senate to pass the Crypto Clarity Act before the August recess. The House approved the bill in July 2025, but it's been stuck in the upper chamber for over a year. The legislation would provide a federal framework for digital assets, but disagreements over stablecoin yield restrictions and congressional disclosure requirements have blocked progress.
Why the bill is stuck
Two main issues are holding things up. First, restrictions on stablecoin yields — some senators want to limit how much interest issuers can offer. Second, a requirement that members of Congress disclose their crypto holdings and earnings. That's a non-starter for some lawmakers. Supporters need at least seven Democratic votes to move the bill forward, and they haven't found them yet.
Trump's crypto earnings draw fire
Trump disclosed roughly $1.2 billion in crypto-related earnings during his first year in office. That figure has become a flashpoint. Sen. Mark Warner criticized the idea of elected officials profiting from crypto while writing its rules. The disclosure requirement in the CLARITY Act is partly a response to that concern — but it's also one of the reasons the bill is stalled.
What's at stake for DeFi and stablecoins
Bitcoin already has regulatory acceptance through spot ETFs and institutional custody. But a stalled CLARITY Act leaves DeFi protocols, Layer 2 networks, and yield-bearing stablecoins in legal limbo. The CFTC's decision on domestic perpetual crypto futures is still pending — that could reshape liquidity and price discovery. Without a federal framework, these markets operate under a patchwork of state and agency guidance.
Broader regulatory moves
Treasury Secretary Scott Bessent renewed calls for a comprehensive federal framework this week. Across the Atlantic, the UK's Financial Conduct Authority is consulting on a new crypto regime and ramping up enforcement against illegal peer-to-peer trading. Meanwhile, Standard Chartered enabled clients to use BlackRock's tokenized US Treasuries as collateral through OKX — a sign that institutional demand is growing even as U.S. policy lags.
The Senate is set to break for August recess at the end of the week. Supporters need those seven Democratic votes. Whether they can find them before the break — or whether the bill waits until September — is the open question.
