U.S. Senate Puts Off CLARITY Act Vote Until After Summer Recess, Clouding Prospects Ahead of Midterms

The U.S. Senate has delayed a vote on the CLARITY Act until after the summer recess, pushing the timeline into September and raising fresh doubts about whether the bill can advance in the near term, ChainCatcher reported. The CLARITY Act cleared the House of Representatives with bipartisan backing and is designed to create a federal framework for regulating digital assets. It would also spell out the roles of different regulators and support deeper integration of crypto assets into the U.S. financial system. Sen. Thom Tillis, a North Carolina Republican, said the September delay may have cut the bill's chances of ultimately passing by 50%. Sen. Cynthia Lummis, a Wyoming Republican leading negotiations, said talks have stretched for nearly 11 months and expanded the bill by about 300 pages as it absorbed numerous amendments sought by Democrats, arguing that the Senate should now move to a vote. Democrats remain opposed to the current version, centered on provisions governing government officials' crypto-related interests. They say the draft does not go far enough in restricting federal officials from investing in or promoting crypto assets, and it does not require full divestment. Democrats are also seeking stronger enforcement authority for state attorneys general. Some lawmakers from both parties have previously pushed for tighter ethics rules, and negotiations are continuing. Democrats have also highlighted potential conflicts of interest involving Donald Trump and his family and crypto projects such as World Liberty Financial. The crypto industry had been hoping the Senate would advance procedural votes before the summer recess, a timetable that could have enabled changes to political spending strategies ahead of the 2026 midterm elections. Fairshake, the sector's main political action committee, started the current cycle with nearly $200 million in cash reserves, according to data.