The U.S. Senate has officially delayed a procedural vote on the CLARITY Act until September, ending hopes that lawmakers could advance the major cryptocurrency market structure bill before leaving Washington for their August recess.
Senate Majority Leader John Thune confirmed the delay on Thursday, saying the legislation would be prioritized when senators return to Washington in mid-September.
The Senate is scheduled to begin its month-long recess on Friday, leaving only a few weeks in September to advance the legislation before political attention increasingly shifts toward the November midterm elections.
Lawmakers Still Need 60 Votes
The delay gives supporters several additional weeks to secure the 60 Senate votes required to advance the bill. Republicans cannot reach that threshold alone, meaning some Democratic support will be necessary.
A source familiar with negotiations said Senate Democrats were reluctant to hold the procedural vote before the recess, partly because of the political implications surrounding cryptocurrency ahead of the midterms. Republican support has also shown signs of uncertainty.
If the Senate eventually approves an amended CLARITY Act, the legislation would need to return to the House of Representatives for another vote before reaching President Donald Trump's desk.
Crypto industry representatives expressed disappointment but emphasized that negotiations would continue.
Carbone said the organization would use the coming weeks to find the remaining areas of compromise necessary for a successful September vote.
Stablecoin Rewards Remain Contentious
Several major policy disagreements continue to complicate negotiations, including the treatment of stablecoin rewards.
The issue centers on whether cryptocurrency companies should be permitted to offer users rewards or interest-like benefits for holding stablecoins. The debate has increasingly become a broader dispute between the crypto industry and traditional banks, which argue such products could compete directly with bank deposits.
Tensions between the two industries have intensified throughout the year as crypto companies push for rules allowing them to expand further into payments, lending, and other financial services traditionally dominated by banks.
Crypto Ethics Debate Complicates Negotiations
Ethics provisions involving public officials and cryptocurrency businesses have also emerged as a major obstacle.
Lawmakers have debated how the legislation should address President Trump's cryptocurrency interests, including his memecoin and his family's involvement with World Liberty Financial.
Trump is reportedly considering a bipartisan ethics proposal from Senators Ruben Gallego and Thom Tillis. The proposal would allow state attorneys general to enforce restrictions preventing public officials and their spouses from issuing or sponsoring digital assets.
The latest proposal reportedly also includes provisions that could require Trump to divest from certain crypto-related businesses, adding another politically sensitive dimension to negotiations.
September Becomes Critical for U.S. Crypto Regulation
Concerns surrounding illicit finance and consumer protection remain another sticking point. Some lawmakers argue the current CLARITY Act does not provide regulators and law enforcement agencies with sufficient authority to combat illegal cryptocurrency activity, while industry representatives strongly dispute that assessment.
Ji Hun Kim, CEO of the Crypto Council for Innovation, called the delay disappointing but said efforts to pass the legislation would continue with lawmakers from both parties.
With the August window now officially closed, September has become the next critical deadline for U.S. crypto market structure legislation. Lawmakers will return to Washington facing unresolved disputes over stablecoins, ethics, consumer protection, and illicit finance, while the approaching midterm elections could make reaching bipartisan compromise increasingly difficult.
