The US crypto market regulation bill is facing new obstacles. We break down what’s holding up the final passage of the CLARITY Act.
The Senate has delayed consideration of the CLARITY Act. The reasons: limited time and competing legislative priorities, CoinDesk reports.
Hot topic: Trump Agrees to Ethics Amendments for CLARITY Act — Major US Crypto Bill Could Pass This Summer
Senate Majority Leader John Thune has focused the chamber on federal appointments and a new Russia sanctions bill. Procedural rules prevent the Senate from debating multiple controversial bills simultaneously.
A vote on the CLARITY Act is unlikely before next week–the final days before the August recess, which begins on August 8. If the bill isn’t passed before the break, debate will resume in September.
Contents
Why the CLARITY Act Matters and Who Opposes It
The main sticking point remains the ethics provision barring top US officials, including President Trump, from supporting or participating in crypto projects. Trump agreed to a compromise last week, but Democrats say the restrictions don’t go far enough. Republicans hold 53 Senate seats, but the bill needs 60 votes, requiring support from at least seven Democrats.
Senator Cynthia Lummis, a bill sponsor, said the CLARITY Act would close financial loopholes used by North Korea’s Lazarus Group. Treasury estimates Lazarus has stolen at least $3.4 billion in crypto since 2007. The law would give the Treasury new sanctions tools and provide exchanges with legal protection when freezing suspicious assets.
New York Attorney General Letitia James has come out against the bill. She warned the CLARITY Act would weaken states’ ability to regulate crypto and investigate fraud. Complaints to her office about crypto scams have tripled in three years, with losses approaching $500 million over five years. James called for stronger AML requirements and preserving state authority.
Read more: US Gaming Groups Demand Ban on Sports Prediction Markets in CLARITY Act
CLARITY Act Odds — What’s Next for US Crypto Regulation
Polymarket currently puts the probability of CLARITY Act passage in 2026 at 33-37%, down from above 80% in February. If the vote slips to September, debate will move closer to the midterms, when lawmakers have less time and interest. Even if the Senate approves, the bill must pass the House again and then go to the president’s desk.
The Probability of the CLARITY Act Passing in the US Before January 1, 2027, is Estimated at 37% as of July 28. Source: Polymarket.
Without the CLARITY Act, the main regulatory mechanisms would be the GENIUS Act for stablecoins and SEC and CFTC policies. Some Democrats are unwilling to support the bill without clearer ethics language.
Learn more: How the CLARITY Act Could Reshape US Crypto Trading
