The United States Senate has decided not to hold a vote on the Digital Asset Market Clarity Bill (CLARITY Act) before the August 8 recess. Instead of addressing crypto regulation, the Senate chose to process a package of federal nominations and a Russia sanctions draft dedicated to a recently deceased senator.
Markets quickly responded to the sluggish legislative pace. The probability of the CLARITY Act being enacted into law in 2026 has dropped to 34% on prediction market platforms. Senate Majority Leader Thune had previously hinted at this by not targeting the bill for the Senate floor before the recess. His goal at the time was merely to start discussions to gauge voting support. Although a White House crypto adviser previously dismissed the delay and claimed the first week of August remained an option, the Senate agenda proved otherwise.
A Year-End Way Out
Despite being dropped from the main schedule, one loophole remains. Lobbyists are now drafting a rider strategy, attaching the CLARITY Act text to must-pass legislation this coming December. This piggyback measure could come in the form of an omnibus budget, annual defense authorization, or a tax package. Through the rider mechanism, the CLARITY Act could be passed without going through a separate cloture vote since it would be attached to a bill Congress cannot afford to let fail.
It is important to note that this tactic has only circulated within lobbying circles. Not a single senator has openly confirmed it yet. If the CLARITY Act indeed takes this route, its contents will almost certainly be drastically scaled back. The 300-page bill, which includes a new registration regime, certification processes, jurisdictional allocations, and developer protections, is too bulky to serve as a mere rider provision. Only a small fraction of the draft stands a chance of surviving, such as classification clauses and grandfather provisions. Ethics rules that triggered fierce debates will likely be scrapped.
Opposition from Within the Senate
Attaching to a December bill may circumvent deadlines, but it does not address the root of the obstacle. The main hurdle for the CLARITY Act is not scheduling, but substantial opposition from within Congress. Seven Democratic senators involved in negotiations have released a joint statement rejecting the latest draft of the bill dated July 22. They labeled the draft an unserious document.
The situation grows even more difficult as one of two Democratic senators who previously backed the draft at the committee level has also reversed course, offering a similar assessment that the current document is not a serious effort. Without roughly seven additional votes from Democratic ranks, the cloture procedure will inevitably hit a dead end. Forcing this measure through as a rider will ultimately fail to solve the shortage of votes.
Seeking a regulatory loophole at year-end might salvage the remnants of the CLARITY Act. However, without bipartisan support, the draft merely swaps a scheduling issue for a voting stalemate.
Reported by crypto.news.
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.
