Senate Postpones CLARITY Act Vote Until September

The US Senate dropped plans to vote on the major CLARITY Act before taking its August break. Senate Majority Leader John Thune confirmed that the legislation will wait until lawmakers return to Washington on September 14, reversing earlier expectations that the Senate would take action before leaving town.

The delay stems from unresolved disputes involving banking rules, ethics concerns, and anti money laundering safeguards. Republican negotiators struggled to secure the 60 votes needed to advance the bill, partly due to disagreements over whether crypto exchanges should be allowed to offer rewards on stablecoins. Traditional banks argue that such rewards drain deposits from standard accounts, while crypto advocates view restrictions as unfair protectionism against competition. At the same time, Democratic lawmakers are pushing for stricter financial crime protections and ethics rules regarding government officials and digital assets.

Prediction markets reacted sharply to the news, with Polymarket traders dropping the probability of the bill passing this year to about 14 percent. Industry leaders, including Coinbase CEO Brian Armstrong and Digital Chamber CEO Cody Carbone, expressed disappointment but stressed that talks will continue during the recess.

When the Senate returns in September, lawmakers will face a tight schedule with only about 14 working days available before the next round of campaign breaks. Supporters must quickly resolve remaining disputes to keep the legislation alive before the current Congress expires.