Clarity Act on the Ropes as Ethics Fight and Shrinking Calendar Threaten Passage
The Clarity Act, the main Senate crypto market-structure bill, is increasingly unlikely to pass before the August recess. Senate Majority Leader John Thune said floor action may start, but there may not be enough time or votes to finish before lawmakers leave, and a delay into September would hurt its chances this year. The main obstacle is ethics language. Republicans released updated text banning federal officials, including the president, from issuing or sponsoring digital assets, but Democrats needed for the 60-vote threshold rejected it. Sen. Ruben Gallego called the GOP offer insufficient, while Sen. Thom Tillis said stronger guardrails are still needed. Several other Democrats also say they cannot support the draft because of ethics and illicit-finance concerns. Crypto industry groups are pressing leaders to move the bill anyway, while some supporters insist passage before Aug. 7 is still possible. The bill would define SEC and CFTC authority over crypto and legalize most crypto activity, but stablecoin yield, ethics, and conflicts of interest remain unresolved. Betting markets and analysts now see passage as less likely.
