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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.

The US Senate will not vote on the CLARITY Act, a significant piece of legislation concerning cryptocurrency market structure, before their August recess. Consideration of the bill is now expected in September, following the Senate’s return.

According to a spokesperson for Senate Majority Leader John Thune, Democrats remain opposed to holding a vote before the recess. This delay introduces a period of continued regulatory ambiguity for the crypto industry, which has been awaiting clearer legislative frameworks. The bill requires 60 votes to advance in the Senate, necessitating bipartisan support. Currently, the path to securing such a majority appears challenging due to political divisions.

Reasons for the Delay

Democrats are reportedly pushing for stronger safeguards to prevent potential financial benefits for President Donald Trump from the cryptocurrency market while he is in office. Additionally, some Republicans have expressed concerns. Senator Josh Hawley has stated he will oppose the bill unless issues raised by community banks are addressed. These differing viewpoints highlight the complex political landscape surrounding the CLARITY Act.

Legislative Hurdles and Next Steps

Even if the CLARITY Act were to pass the Senate, it would still need to return to the House of Representatives for approval before being sent to the President. This multi-step legislative process underscores the hurdles the bill faces.

Potential Implications and Industry Outlook

Industry observers suggest that while the delay might cause short-term market fluctuations, it does not necessarily derail the long-term growth prospects of the crypto sector. Matt Hougan, Chief Investment Officer at Bitwise, noted that missing the August vote would not be a critical blow and that the legislation could be revived later in the year. He indicated that the primary concern for institutional investors is the ongoing uncertainty surrounding the bill. Hougan believes that a clearer regulatory outlook, once achieved, could ultimately boost confidence and support a stronger crypto rally.

Market Reaction

Major cryptocurrencies showed a muted reaction to the news. On Friday, Bitcoin was trading around $64,100, while Ethereum slipped below $1,900. XRP experienced a decline of over 2.5%, trading at $1.02. BNB fell 1.4% to $587, and Solana decreased by more than 1.7% to $72.6.

The postponement of the CLARITY Act vote means that senators have additional weeks to gather the necessary support. However, the specific nature of the safeguards sought by Democrats and the resolution of community bank concerns remain key uncertainties that may influence the bill’s future progress.

Why This Matters

The materials describe a narrow update: The US Senate will not vote on the CLARITY Act before their August recess, postponing consideration until September. Whether the CLARITY Act will gather sufficient support (60 votes) in the Senate.

Broader Context

Source materials place the factual news in this context: The industry’s biggest legislation has faced yet another setback.

Japanese officials have repeatedly requested that the U.S. government cease the unauthorized use of Japanese intellectual property, such as anime and game characters, in its social media content. These diplomatic complaints, ongoing since March, highlight concerns over copyright infringement and potential damage to the brand image of these popular franchises.

According to local reports, the Japanese foreign ministry has called out Washington over the unauthorized use of anime and game IP in social media associated with the Trump administration. In April, Foreign Minister Toshimitsu Motegi stated in a parliamentary session that “it’s inappropriate even for public institutions to reproduce copyrighted materials without the rightsholders’ consent.” This statement referenced a pro-war video that reportedly used footage from Nintendo’s Wii Sports.

Further emphasizing the diplomatic channels being utilized, Cabinet Minister Kimi Onoda said in June that the same principle had been conveyed to the U.S. through diplomatic channels “multiple times.” Per reports from Mainichi, Tokyo asked the administration to consider the potential damage to these intellectual properties when they are used without permission in policy-related or pro-war content.

Instances of Concern and Backlash

The U.S. administration’s social media accounts have, over the past year, incorporated Japanese franchises into their content. In September 2025, Homeland Security posted a mash-up combining Pokémon’s Ash Ketchum with ICE raid footage, set to the series’ theme song. The Pokémon Company later stated that permission was never sought for this post.

More recently, in March, the White House X account posted Wii Sports footage juxtaposed with Iran strike footage. This was followed by a second pro-war clip that wove in elements from Halo, Yu-Gi-Oh!, Dragon Ball, Top Gun, Iron Man, and Braveheart. The backlash was not limited to official channels. Master Chief voice actor Steve Downes and Yu-Gi-Oh!’s official account pushed back against the White House posts. The official Yu-Gi-Oh! account stated on X that its footage was used without the rights holder’s permission and that they were not involved.

The issue resurfaced in June after President Trump shared an AI-generated video of himself depicted as Naruto on Truth Social. This clip prompted fresh questioning of Minister Onoda on June 12. In response to the Trump post, fan Nana Suzuki reopened a “Protect Japanese Manga” petition on Change.org, which urges measures to stop the use of Japanese manga IP. Suzuki had initially launched the petition earlier, and its reopening was described as an “urgent effort to convey our protest.”

Brand Risk and Diplomatic Implications

Japan maintains strict policing of intellectual property, and its creative industries are known for carefully protecting character IP. The Japanese government views unauthorized use by a foreign state as a matter of brand risk, rather than flattery. When established franchises are placed alongside polarizing policies or content, the “damage to a work’s image” that Tokyo warns about is the dilution that rights holders track.

While these complaints are noted through diplomatic channels and are described as “small in diplomatic terms—notes to an embassy, not a lawsuit,” they land at a sensitive point concerning how the White House communicates. The specific number of times diplomatic channels have been used, the full extent of the damage to the image of the IPs, and whether the U.S. government will fully comply with the requests remain uncertain.

Why This Matters

The materials describe a narrow update: Japanese officials have expressed concerns and made repeated requests to the U. The exact number of times diplomatic channels have been used.

Broader Context

Source materials place the factual news in this context: Japanese officials have repeatedly asked the U.S. government to stop its meme posting involving Mario, Pokémon, and Naruto.

Russia has enacted its first comprehensive law governing digital currencies, establishing a regulated framework for the trading and custody of digital assets while maintaining a ban on their use for payments. The legislation, signed by President Vladimir Putin, sets the stage for a controlled digital asset market, with most provisions scheduled to take effect on September 1.

The new law permits the issuance, storage, accounting, and trading of digital currencies. It also formalizes cryptocurrency mining, a sector previously legalized in 2024, and creates a framework for exchanges and related services. However, the use of cryptocurrencies as payment for goods and services remains prohibited, along with related advertising. The Russian Government’s aim is to establish a regulated on-ramp for digital assets, rather than a parallel currency, state news agency Tass reported.

Under the new regulations, only government-registered organizations can operate cryptocurrency exchanges. These entities must meet specific capital requirements, including at least 15 million rubles of their own capital, and be affiliated with a self-regulatory body. Retail investors face annual purchase limits and must pass a knowledge test, with non-accredited investors capped at 300,000 rubles per year per intermediary. Qualified investors also need to pass a knowledge test but are not subject to purchase limits.

The law may provide court protection for crypto owners and allows for settlements under foreign trade contracts involving mined coins and payments within digital asset platforms. Decrypt tracked the bill, noting that Western regulators may be observing the carve-out for settlements under foreign trade contracts.

Most of the law’s provisions will come into effect on September 1. Existing operators in the digital asset space have a grace period to register by July 1, 2027. This framework aligns with the push for a digital ruble, with the central bank governor indicating that banks must support the digital ruble by the same September 1 date.

Uncertainties persist regarding the specific list of ‘most liquid cryptocurrencies’ available to non-accredited investors, and the exact scope of ‘court protection for crypto owners’ may require further clarification. The state has established a central bank-supervised pipeline for monitoring digital assets, signaling an intent to control and monitor digital asset flows while facilitating regulated trading and specific cross-border transactions.

Why This Matters

The materials describe a narrow update: President Putin signed a law that establishes rules for the issuance, storage, accounting, and trading of digital currencies. The specific list of ‘most liquid cryptocurrencies’ available to non-accredited investors has not yet been disclosed.

Broader Context

Source materials place the factual news in this context: Russia already legalized cryptocurrency mining in 2024, when Putin signed a separate bill green-lighting the industry, so this law fills the gap on trading and custody that the mining rules left open.