Senate Delays CLARITY Act Vote, Leaves 14 Workdays

The Senate postponed a planned vote on the CLARITY Act before its August recess, moving action to the fall and narrowing the window for lawmakers to advance the bill. Majority Leader John Thune confirmed the delay on Aug. 6 and a Thune spokesperson wrote on X that “The Dems are insistent on no Clarity vote… I worked with sponsors of the bill…and we’re getting that queued up first thing when we come back.”

Negotiators have been unable to assemble the 60 votes needed to clear the Senate because of disputes over banking rules, ethics provisions and anti-money-laundering language. Republicans and Democrats differ on how to regulate stablecoin rewards, how to limit conflicts for senior officials and how to strengthen illicit-finance safeguards. Those disagreements prevented sponsors from advancing the measure before the recess.

A key issue centers on whether crypto exchanges and intermediaries should be limited in the incentives they can offer customers for holding stablecoins. Current law under the GENIUS Act bars stablecoin issuers from directly paying interest or yield. Banking groups want additional limits on exchange-run reward programs, saying such programs could divert deposits from traditional banks. Some Republican senators, including Sen. Jerry Moran, indicated they want changes aligned with the banking industry before supporting the bill. Senators Thom Tillis and Angela Alsobrooks proposed language in May to separate passive rewards from activity-based incentives, but negotiators did not reach a resolution that satisfied banking groups.

Democratic senators pressing for changes emphasized money-laundering controls, sanctions evasion protections and limits on senior government officials profiting from crypto businesses. A bipartisan ethics proposal has been sent to the White House that would require President Trump to divest from crypto-related businesses and could permit deferral of capital gains taxes tied to that divestment. Sen. Chris Van Hollen described the legislation as “not ready for prime time,” citing unresolved questions about financial stability and illicit-finance safeguards.

The calendar leaves a tight window for further action. The Senate returns Sept. 14 but is scheduled to be away Sept. 21, and a state work period runs Oct. 5 through Nov. 6, producing roughly 14 weekdays in Washington. Any Senate text that differs from the House bill would require reconciliation before final passage, and the current Congress expires in January, after which unfinished bills would have to be reintroduced.

Markets and industry groups reacted to the delay. A prediction market contract asking whether CLARITY would be signed into law by the end of 2026 fell to about a 14% probability after earlier higher trading. Industry leaders said they will use the recess to press senators and seek compromises. Digital Chamber CEO Cody Carbone called the failed August push disappointing and added that negotiations will continue during the break. Coinbase CEO Brian Armstrong argued leaders had negotiated for a year and made concessions, urging a vote. Sen. Dave McCormick warned that continued uncertainty could shift jobs and investment outside the United States.

When senators return in September, supporters will test whether they can resolve remaining disputes and assemble the votes needed to move CLARITY through the Senate.