The Senate will not vote on the CLARITY Act before its August recess, pushing the crypto market structure bill into September. Coinbase CEO Brian Armstrong said crypto's momentum keeps building regardless, while Senate Republicans remain split over letting stablecoins pay yield to holders and over ethics language covering public officials' digital-asset dealings.
Senate Majority Leader John Thune has committed to bringing the CLARITY Act to the floor once lawmakers return from recess, with consideration on the crypto market structure bill now expected in September. Coinbase CEO Brian Armstrong called the Senate's failure to advance the bill this week disappointing, though he said progress across the crypto sector continues.
Armstrong Says Momentum Continues Regardless
Armstrong pointed to growing stablecoin use and expanding markets for perpetual futures and tokenized real-world assets, adding that more consumers are using crypto despite the delayed vote. He said: "The momentum behind this technology keeps growing with or without a congressional calendar."
Stablecoin Yield Splits Senate Republicans
Formally known as H.R. 3633, the Digital Asset Market Clarity Act passed the House in July 2025 and cleared the Senate Banking Committee in May 2026 with a 15-9 vote. Senate Republicans have since balked at provisions that would let stablecoin issuers pay yield to holders, a feature banking groups argue would pull deposits out of traditional banks.
The banking lobby has pointed to companies like PayPal already offering yield on digital assets as evidence the concern isn't hypothetical. The bill needs 60 votes for cloture on the Senate floor — a threshold that looked increasingly difficult to clear before recess as Republican concerns over the yield provisions intensified.
Ethics Language Still Unresolved
Separate from the yield fight, the White House and senators are still negotiating ethics provisions covering public officials' digital-asset activity. The revised text would bar officials and their spouses from issuing or sponsoring digital assets for compensation while in office, with those restrictions set to expire in January 2029. Democrats have pushed for additional safeguards, and talks continue over language touching President Donald Trump's crypto business interests.
Armstrong said Congress still has an important role in setting federal market structure rules, arguing that clear legislation could support investment, innovation and employment while strengthening consumer protections.
Sources: CoinGape, Crypto Briefing
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