Crypto
Home›Crypto›Regulation›Senate delays CLARITY Act vote until lawmakers return…
Senate delays CLARITY Act vote until lawmakers return in September
Prediction markets now price the bill’s passage at about 14% for signing into law by end of 2026 after earlier odds rose above 80% this year.
The US Senate has abandoned plans to vote on the CLARITY Act before its August break, with Senate Majority Leader John Thune confirming Aug. 6 that action will wait until lawmakers return Sept. 14. The timeline reversal follows weeks of pressure from crypto executives and Republican lawmakers that had sought a vote before the recess.
The delay is the latest setback for the legislation, which stalled as negotiators could not resolve banking, ethics, and illicit-finance disputes needed to secure 60 Senate votes to advance the bill. CryptoSlate reports that a key complicating factor involved disagreement within Republican ranks, including Kansas Sen. Jerry Moran signaling he wants changes favored by banks, making it harder to reach the vote threshold.
A central fight involves how stablecoin rewards would be treated, with banking groups arguing exchanges could sidestep restrictions by offering similar yields to customers. The GENIUS Act already bars stablecoin issuers from directly paying interest or yield, but banks say exchanges might circumvent that limit by structuring rewards themselves, potentially drawing deposits away from traditional banks and reducing funds for lending.
Crypto companies argue broader restrictions would protect banks from competition, while Senate Republicans attempted to bridge the divide in May with language distinguishing passive rewards from incentives tied to payments or other activity. In parallel, Democrats raised additional concerns, including stronger safeguards against money laundering and sanctions evasion, and rules to curb senior government officials profiting from crypto businesses.
The post-delay outlook has also shifted among prediction traders, with a Polymarket contract on whether CLARITY will be signed into law by the end of 2026 placing the probability at about 14%, down from odds above 80% earlier this year, according to CryptoSlate. The article also notes a bipartisan ethics proposal sent to the White House that would require Trump to address the conflict concerns raised by Democrats.