U.S. Senate Puts Off Clarity Act Vote Until September, Tightening the Path to Passage

The U.S. Senate will not take up a floor vote on the Clarity Act, a long-awaited crypto market-structure proposal, until September. Senate Majority Leader John Thune (R-SD) confirmed late Thursday that Democrats are "insistent on no Clarity vote" before the August break, adding that sponsors, including Sen. Cynthia Lummis (R-WY), plan to move quickly once lawmakers return. The timing compresses the bill's runway. The Senate departs for recess Friday and returns in mid-September for only a short stretch, widely seen as the last workable window this year before midterm campaigning consumes the calendar. A person familiar with the discussions told The Block that many Senate Democrats are reluctant to cast a vote as the crypto industry's political influence expands. The delay also gives backers more time to assemble the 60 votes needed to overcome a filibuster. The measure cleared the Senate Banking Committee in May on a 15-9 vote, with only two Democrats breaking ranks at the committee stage: Rep. Ruben Gallego (D-AZ) and Sen. Angela Alsobrooks (D-MD). On the floor, supporters would still need roughly six Democratic votes to reach 60. Republican backing has also been uneven, and expectations have cooled. Galaxy Research in June lowered its estimate of passage this year to roughly a coin toss. Substantive disputes that have trailed the bill for months remain unresolved, including how stablecoin mechanics and rewards should be handled, whether the legislation gives law enforcement adequate tools to combat illicit finance, and ethics provisions tied to President Donald Trump's crypto interests. One of the most politically sensitive pieces is an addendum reportedly negotiated by Senators Thom Tillis (R-NC) and Ruben Gallego. The language has not been released and is still being worked through with the White House. It would require the president to divest from crypto-related businesses. Bloomberg reported that under the addendum's forced-divestiture framework, the president could defer federal capital-gains taxes on those assets for years; if replacement investments were held until death, the gains could potentially avoid tax entirely. 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. Without a deferral mechanism, he would face the standard 20% capital-gains rate. Bloomberg also noted that Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent used similar provisions in their own divestments. The addendum would also allow state attorneys general to sue to enforce ethics measures if the Justice Department declines to act. Whether the president would accept such a package remains unsettled. Crypto industry groups criticized the delay while emphasizing the cost of inaction. Crypto Council for Innovation CEO Ji Hun Kim called the postponement "disappointing" and said each day without a clear U.S. framework "pushes American users and builders offshore and leaves consumers at risk." The sector also remains wary of an alternative path: SEC Chair Paul Atkins said last month the agency is prepared to draft crypto rules on its own if Congress stalls, a route the industry opposes because agency rulemaking can be reversed by a future administration. If the Clarity Act advances through the Senate in September, it would return to the House for another vote before going to President Trump. With a shortened fall schedule and key controversies still in play, the bill's ability to secure the necessary votes remains uncertain.