The vote on the CLARITY Act draft bill has been officially delayed until September. Senate Majority Leader John Thune confirmed the postponement ahead of the Senate recess starting Friday. Citing Thune, Democrats insisted on rejecting a vote before the holiday break.
The decision prolongs regulatory uncertainty for the industry in the United States. Thune promised that the CLARITY Act will be the top priority when the Senate reconvenes in mid-September. However, their calendar is growing tighter. The Senate only has a few weeks left before the midterm campaigns consume all of Washington’s political attention. Responding to the slow pace of this process, Galaxy Research has slashed the chances of the bill passing this year to 50-50 since last June.
Trump’s Crypto Holdings Become an Obstacle
The path to gathering the 60 votes needed to overcome a filibuster remains steep. In the Banking Committee vote last May, which ended 15-9, only two Democratic senators voted in favor: Ruben Gallego and Angela Alsobrooks. To win on the Senate floor, proponents need about six more Democratic votes.
Negotiations are stalled on three main issues: stablecoin yield rules, anti-money laundering protections, and ethics provisions regarding Donald Trump’s crypto holdings. Trump previously reported $1.4 billion in income from crypto assets and memecoins in 2025, and holds a 38% stake in the World Liberty Financial project.
Republicans attempted to break the deadlock through the Tillis-Gallego Addendum. This rule would require Trump to divest his crypto but grant him a deferral on capital gains taxes. This delay could potentially save millions of dollars in tax payments, a concession that complicates the deal.
Time Advantage for Asian Competitors
The gridlock in Congress is immediately seen as creating an opening for global competitors. First Digital CEO Vincent Chok views the delay as providing a competitive edge for Asian financial hubs, specifically Hong Kong and Singapore, to attract investment.
Domestically, industry participants have responded negatively. Wellington-Altus strategist James Thorne called the delay a pure victory for Senator Warren over the regulatory status quo. 1inch Deputy General Counsel Maylea Ma added that without the CLARITY Act, the crypto industry will once again face regulation through unilateral enforcement actions.
The risk is clear and present. Crypto Council for Innovation CEO Ji Hun Kim emphasized that every day without a regulatory framework only drives users and ecosystem builders to relocate overseas.
If legislation fails to pass Congress, the final option is actually feared by the market. SEC Chairman Paul Atkins stated he is ready to draft crypto rules on his own - a scenario the industry dislikes due to power being concentrated in a single agency. The options for U.S. market participants are now narrowing: patiently wait for the Senate to return from summer recess, or pack their bags for other jurisdictions.
Reported by Decrypt.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
