The U.S. Senate left for its August recess without advancing the CLARITY Act, setting up a Sept. 15 procedural vote instead. Crypto industry figures, including Sen. Cynthia Lummis and Coinbase CEO Brian Armstrong, called the delay disappointing, while prediction markets remain split on whether the bill becomes law in 2026.
Senate Majority Leader John Thune filed cloture on the motion to proceed to the Digital Asset Market Clarity Act just before the chamber's month-long recess, positioning the bill for a procedural test after senators return on Sept. 14. The cloture motion is scheduled to ripen on Sept. 15, the market structure bill's first real test.
Cloture vote tests the bill, not final passage
Clearing cloture would only let the Senate begin formally considering CLARITY, not adopt it outright. Any Senate version that differs from the House-passed text would still have to return to the House before reaching President Donald Trump's desk. The legislation needs at least 60 votes to clear that threshold, meaning Republicans cannot pass it without Democratic support.
The House approved the CLARITY Act by a 294-134 vote on July 17, 2025, with 78 Democrats in favor. The Senate Banking Committee later advanced its version by a 15-9 vote in May 2026, with Democratic Sens. Ruben Gallego and Angela Alsobrooks joining Republicans.
Lummis and Armstrong call the delay disappointing
Sen. Cynthia Lummis said "You can imagine how frustrated I am", reacting to the delay. She added that she would keep working with other senators on the bill.
Coinbase CEO Brian Armstrong called the delay disappointing but said broader crypto adoption would continue regardless of Congress's schedule, pointing to stablecoin adoption and tokenization as sources of momentum. The delay hasn't dented Coinbase's stock: COIN closed Friday at $153.60, up about 5.7% during the session.
Ethics fights and stablecoin rewards divide senators
The September timetable gives lawmakers more time to negotiate, but it also pushes the vote closer to the Nov. 3 midterm elections, leaving the Senate roughly seven weeks to act. Democratic demands for stronger ethics restrictions on crypto holdings by senior officials and their families — centered on Trump's ties to World Liberty Financial and the Official Trump memecoin — remain one of the main obstacles. Sen. Elizabeth Warren has rejected the current CLARITY Act over corruption, consumer protection, national security, and financial stability concerns, despite backing a federal crypto framework.
Banking groups are separately pressing senators to close what they call stablecoin-yield loopholes, arguing the bill could still let crypto companies offer stablecoin rewards that draw deposits from community banks. Crypto advocates counter that the legislation already bars stablecoin issuers from paying deposit-like interest.
Prediction markets split on 2026 passage
A Kalshi contract with about $1.23 million in trading volume puts the odds of a Senate vote before Oct. 1 at 88%. A separate Polymarket contract, with more than $5.79 million traded, assigns just a 25% probability that CLARITY becomes law during 2026. Kalshi traders have also priced the odds of the bill taking effect before July 1, 2027 at 41%, reflecting expectations of a longer timeline.
Source: crypto.news
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