Clarity Act Hits Snooze Until September, Thune Comforts Crypto With "First Thing When We Come Back" 🫠

Senate Majority Leader John Thune (R-SD) confirmed the U.S. Senate will not hold a procedural vote on the Digital Asset Market Clarity Act before the August recess, pushing the crypto market structure bill to September. "The Dems are insistent on no Clarity vote," Thune said in remarks posted by his press office, noting he had worked with the bill's sponsors and that Senator Cynthia Lummis (R-WY) "was great, and we're getting that queued up first thing when we come back." The Senate is expected to reconvene on September 14.

Thune's office had indicated earlier in the week that a cloture motion on the Clarity Act would not be filed, as the chamber prioritized a Continuing Resolution to avoid a government shutdown. The Senate voted 89-4 on the CR before the midterm elections, and Thune filed cloture on Calendar No. 320, "Continuing Resolution," H.R. 6500, along with the Collins substitute amendment #6732. The Senate Cloakroom reported Thune also introduced cloture on Calendar No. 449, S.4668, the Protect College Sports Act of 2026, Executive Calendar No. 914 for the nomination of Todd Blanche as U.S. Attorney General, and Executive Calendar No. 910 for the nomination of Erica Schwartz to lead the Centers for Disease Control and Prevention. The Senate Press Gallery's daily schedule for Thursday reconvened at 10:00 a.m. to "resume consideration of the nominations in bloc, pursuant to S Res 817, post-cloture," with "roll call votes expected but not yet scheduled."

Senate Democrats have been reluctant to vote ahead of the midterms, given the crypto industry's growing political influence, according to a source familiar with the matter. Roughly six Democratic votes are needed on the floor; the bill cleared the Senate Banking Committee 15-9 in May, with only Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD) crossing. Senator Thom Tillis (R-NC) told reporters, "We've got people working with the White House right now… they're going through some of the lines right now," referring to an addendum he negotiated with Gallego that would require the president to divest from crypto-related businesses. The addendum, still unreleased and being worked out with the White House, would let President Donald Trump defer federal capital gains tax on those holdings, potentially for years, and if he held the replacement investments until death the gains would escape tax entirely, Bloomberg reported. Trump reported $1.4 billion in crypto and meme coin earnings for 2025 and holds a 38% stake in World Liberty Financial through an affiliated company; without deferral he would face a 20% rate. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent have both used the same provision on their own divestments. The addendum would also let state attorneys general sue to enforce the ethics measures where the Justice Department declines to.

Industry figures weighed in on the delay during the August 7 episode of CoinDesk's State of Crypto newsletter. First Digital founder and CEO Vincent Chok, whose company issues the FDUSD stablecoin, said the delay could give jurisdictions with clearer regulatory frameworks an advantage in attracting capital and talent, adding: "Markets can adapt to slower timelines, but what they struggle with is prolonged uncertainty." He continued, "For Asia, this delay gives regional financial hubs like Hong Kong and Singapore additional time to demonstrate that clear regulation can coexist with innovation." Maylea Ma, deputy general counsel at decentralized exchange aggregator 1inch, said that if Congress ultimately failed to enact the legislation, the industry could face a return to "regulation by enforcement," with market participants remaining dependent on agency interpretations, case-by-case enforcement and a fragmented patchwork of state money transmitter and securities rules. She contrasted that uncertainty with the European Union, where the Markets in Crypto-Assets Regulation (MiCA) is already in force. Wellington-Altus chief market strategist James E. Thorne called the postponement a "fold" by Thune and a victory for Senator Elizabeth Warren and the regulatory status quo, writing on X: "Regulation should have been passed years ago. Instead, Washington chose to live in ambiguity, letting Warren and the bank lobby weaponise uncertainty, the SEC and the Fed went along for the ride, and now Thune is keeping the CLARITY Act stuck in procedural limbo."

Market reaction to the vote delay was muted but visible across major altcoins. Ripple's $XRP slipped roughly 2.2% over the 24 hours following the announcement to trade near $1.03, while broader market leaders like $BTC remained largely flat. POLITICO reporter Jordain Carney announced on X: "NEWS: Thune just confirmed our scoop that Senate is punting clarity vote until September," adding that he said they would "get it teed up for when they return."