CLARITY Act Stalls in Senate as Political Divisions Push Crypto Bill Into September
The US Senate will not vote on the CLARITY Act before the August recess, pushing the decision to September. Senate Majority Leader John Thune confirmed the delay, citing Democratic opposition. Democrats want stronger safeguards against potential conflicts of interest involving President Donald Trump and crypto. Republican support remains uncertain, with Senator Josh Hawley opposing unless changes address community bank concerns.
Even if passed in the Senate, the bill must return to the House for approval before reaching the President’s desk. Bitwise CIO Matt Hougan noted the delay won’t derail long-term growth, though short-term uncertainty may keep institutional investors cautious. He expects a potential market dip if the vote fails, but clearer regulations could boost confidence later. The SEC could also introduce crypto-friendly rules.
Market reaction was muted: Bitcoin traded at $64,100, Ethereum at $1,900, and XRP fell 2.5% to $1.02. BNB and Solana also declined.