The U.S. Senate has postponed the vote on the CLARITY Act until September, amid internal disagreements and upcoming elections.
The U.S. Senate has delayed a procedural vote on the CLARITY Act, a bill designed to regulate the cryptocurrency market, until after its August recess. This announcement was made by Republican Majority Leader John Thune, who confirmed that discussions will continue when the Senate reconvenes on September 14.
Thune stated, “The Democrats are insisting that there will be no vote on the CLARITY Act. Regardless, I have been collaborating with the authors of the bill. Senator [Cynthia] Lummis has been fantastic, and we will prioritize this bill as soon as we return.”
As the Senate begins its summer break on August 7, it will have limited time to address urgent issues prior to the November midterm elections. Thune has not yet moved to conclude debates on the CLARITY Act, which is essential for advancing the bill. If no motion is filed before the recess, discussions will not resume until mid-September.
To pass the legislation, Republicans, who hold 53 Senate seats, need to secure at least 60 votes, requiring support from seven Democrats. However, internal divisions within the Republican Party complicate matters. Some members, such as Josh Hawley, are advocating for the exclusion of certain risks related to bank deposits, while Senators Susan Collins and Lisa Murkowski have voiced concerns about other provisions in the bill.
Market predictions from Polymarket indicate a mere 14% chance that the CLARITY Act will become law by year-end, a sharp decline from the 55% probability at the beginning of July.
Potential Tax Benefits for Trump from New Proposal
Meanwhile, Senators Thom Tillis and Ruben Gallego have proposed an ethics provision that could significantly impact former President Donald Trump's financial dealings. This proposal, which has been sent to the White House, suggests that the president should divest from cryptocurrency businesses. If enacted, it may allow Trump to defer federal capital gains taxes for several years, potentially saving him millions.
This amended proposal also shifts the enforcement of ethical standards to state attorneys general, differing from earlier drafts that restricted this authority to the U.S. Department of Justice. The specifics of these amendments are still under negotiation.
Trump's financial disclosures indicate that his cryptocurrency ventures generated over $1.4 billion in 2025, with notable income derived from the meme coin TRUMP and the DeFi platform World Liberty Financial. Notably, the Senate Banking Committee had previously approved the CLARITY Act with a vote of 15 to 9, although Democrats initially called for measures to address potential conflicts of interest among officials.
