The U.S. Senate will not vote on the Clarity Act, a bill aimed at structuring the cryptocurrency market, before its August recess, postponing the decision until September. This delay prolongs regulatory uncertainty for the digital asset industry.
Senate Majority Leader John Thune reported the postponement. The Senate is scheduled to reconvene in mid-September for a limited session before the November midterm elections, creating a narrow window for the bill’s potential passage later this year.
The Clarity Act previously cleared the Senate Banking Committee with a 15-9 vote in May. However, securing the 60 votes needed for passage on the Senate floor remains a significant hurdle. A source familiar with the matter indicated that Senate Democrats have been hesitant to vote on the bill before the midterms, citing the crypto industry’s growing political influence. The delay is intended to allow more time to build the necessary support.
Key issues continue to affect the bill’s progress, including debates over stablecoin rewards, the adequacy of law enforcement tools against illicit finance, and ethics provisions concerning President Donald Trump’s cryptocurrency holdings. An addendum, negotiated by Senators Thom Tillis and Ruben Gallego and currently being worked out with the White House, reportedly requires the president to divest from crypto-related businesses. Bloomberg reported that such a divestiture could allow him to defer federal capital gains tax on these holdings for potentially years, with gains potentially escaping taxation entirely if replacement investments are held until death.
Without a deferral provision, President Trump would face a 20% federal capital gains tax rate. Trump reported $1.4 billion in crypto and meme coin earnings for 2025 and holds a 38% stake in World Liberty Financial through an affiliated company. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent have utilized similar divestment provisions for their own holdings.
The addendum also reportedly includes a clause allowing state attorneys general to pursue enforcement of ethics measures if the Justice Department declines to act. Whether President Trump will accept these terms remains unresolved.
Galaxy Research had previously lowered its odds of the bill’s passage this year to a coin toss in June. Ji Hun Kim, CEO of the Crypto Council for Innovation, stated that the postponement is disappointing but that the legislative direction remains unchanged. He emphasized that prolonged regulatory ambiguity risks pushing businesses offshore and leaving consumers exposed.
Should the Clarity Act falter, an alternative regulatory pathway exists. SEC Chair Paul Atkins indicated last month that the agency is prepared to develop its own cryptocurrency rules if legislative efforts stall. The industry has expressed resistance to this approach, as rules created by an agency can be reversed by a future administration.
The path forward for the Clarity Act remains uncertain, with the September vote representing a potential next step for determining the regulatory framework of the cryptocurrency market.
Why This Matters
The materials describe a narrow update: The U. Whether the addendum negotiated by Senators Thom Tillis and Gallego will be accepted by President Trump.
Broader Context
Source materials place the factual news in this context: The U.S. Senate will not vote on the Clarity Act before its August recess, pushing the crypto market structure bill to September and into the closing weeks before midterm campaigning consumes the calendar.
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