Image Credit: Shutterstock
The U.S. Senate has put the CLARITY Act on hold while lawmakers focus on federal nominations and a Russia sanctions bill. The delay gives lawmakers less time to pass the crypto market-structure bill before the Senate begins its summer recess on August 8. Senate leaders have not announced a new date for a floor vote.
Russia Sanctions Bill Delays Senate Action on Crypto
Senate Majority Leader John Thune first moved forward with a package of federal nominees before turning to legislation dealing with sanctions on Russia and tariffs on countries that continue trading with it.
Those priorities have limited the Senate’s available floor time for other contested legislation. Under Senate rules, procedural waiting periods can make it difficult to advance several disputed bills simultaneously.
As a result, voting on the CLARITY Act is unlikely to begin until lawmakers either complete work on the sanctions legislation or set it aside. Lawmakers could still take preliminary procedural steps on the crypto market-structure bill before the August recess.
Even if that happens, a full Senate vote could slip until September, when lawmakers return from the recess period. Thune said:
“Senate leaders would need to “see where the votes are” before moving forward.”
Republicans still need enough Democratic support to reach the Senate’s 60-vote threshold.
Crypto Ethics Rules Remain Unresolved
Senator Cynthia Lummis released the updated CLARITY Act text on July 22, but lawmakers remain divided over restrictions on crypto activity by senior government officials. The current text would stop the president, vice president and some members of Congress from issuing or sponsoring digital assets until January 2029.
Democrats argue that the provision remains too weak because it does not clearly require Trump to give up existing crypto businesses, licensing agreements or revenue-sharing interests. Negotiations are continuing, but lawmakers have not reached a final agreement on the ethics section.
Republicans still require Democratic support to reach the Senate’s 60-vote threshold. Two Democratic senators backed it during the Senate Banking Committee vote in May, but they have not promised to support the final Senate version.
Senate Action May Resume in September
The House and Senate are scheduled to return for several weeks in September. Lawmakers may use that period to move the bill if voting does not begin before the August break.
The CLARITY Act would divide crypto oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The bill also addresses issues including stablecoin rewards, anti-money laundering obligations, decentralized finance, token sales and tokenized securities.
Even if the Senate passes its version, the House would still need to approve the final text. The bill must then reach Trump’s desk before it can become law.
