Senate Majority Leader John Thune aims to start debate on the CLARITY Act before the August recess but stopped short of promising a final vote. Lawmakers are set to leave Washington soon, narrowing the window for legislative action on the bill.
The Senate is expected to remain in session through August 7, yet the final vote is unlikely during this period. The bill requires 60 votes for cloture, needing bipartisan support that remains uncertain due to ongoing disagreements.
Core issues slowing progress include ethics enforcement rules, regulations on stablecoin rewards, consumer protections, and measures against illicit finance. The Senate Banking and Agriculture committees combined their efforts, releasing an updated text on July 22, but some Democrats criticize the draft for falling short on key safeguards and conflict of interest policies.
Republicans rely on Democratic senators to clear the 60-vote threshold, making opposition from a significant group of Democrats a major hurdle. The ethics section is particularly contentious, as it assigns enforcement authority to the Justice Department and restricts senior officials’ digital asset activities temporarily.
White House crypto adviser Patrick Witt suggested the Senate could still act in early August, although a July vote appears off the table. Starting debate before recess might keep the bill alive for a September vote once senators return.
Stablecoin rewards have sparked additional tension between banks and crypto firms. The proposed legislation limits interest-like payments on passive stablecoin holdings but allows rewards linked to customer transactions, as banks warn broad programs could siphon deposits from regulated lenders. Crypto companies argue that these constraints would stifle competition and reduce stablecoin usage.
Market watchers point to the bill’s uncertain outlook. Polymarket data indicates only a 37% chance the CLARITY Act becomes law in 2026, a noticeable decline amid election-year disputes and the Senate’s packed agenda.
