• The CLARITY Act continues to face delays in the Senate as lawmakers remain divided over an ethics provision, leaving only a short September window to push the bill forward.
• The Digital Asset Market Clarity Act has yet to become law and remains a pending piece of legislation. The House passed the bill by a 294-134 vote in July 2025, but the Senate had not held a floor vote or initiated cloture proceedings before the August recess.
• Lawmakers left Washington without taking up the crypto market-structure bill, reducing the time available to advance the measure before the midterm election cycle intensifies.
• Senate Majority Leader John Thune has said the legislation is expected to receive floor consideration in September. Senators will return for an approximately three-week session before heading back to campaign, meaning the CLARITY Act will face competition from other legislative priorities. The bill’s path forward will depend on whether lawmakers can settle the dispute that has kept it from advancing.
• Prediction markets such as Kalshi currently give the bill an 8% chance of passing in September, down from 10% one day earlier. Of the $6.7 million traded in the market, 54% of the volume points to expectations that the bill will pass by July 1, 2027.

CLARITY Act Moves From House Passage to Senate Delay

• The House passed the CLARITY Act with considerable bipartisan support. The Senate Banking Committee later approved its version with backing from two Democrats, making the legislation eligible for floor consideration in June 2026. After remaining on the Senate Legislative Calendar for much of the first half of the year, the bill was shelved in late July.
• The proposed framework would create statutory distinctions between digital commodities and securities while splitting regulatory authority between the CFTC and SEC.
• The CFTC would receive primary oversight of spot markets for digital commodities, while the SEC would continue to regulate digital assets that fall under the securities category.
• The legislation would establish registration regimes for digital commodity exchanges, brokers, dealers and custodians. Regulatory agencies would be responsible for setting requirements covering registration, capital, custody and conduct.
• The proposal also includes a self-certification pathway for networks that satisfy specified maturity standards. It would protect non-custodial software developers from money-transmitter requirements and give federal rules precedence over conflicting state regulations involving covered digital assets and intermediaries.
• The bill would need 60 Senate votes to overcome a filibuster. The most contentious negotiations have focused on an ethics provision concerning federal officials who issue or sponsor digital assets while serving in office.
• On July 22, Republicans released revised language that would prohibit federal officials, including the president, from issuing or sponsoring digital assets while in office. Violations could carry fines of up to $250,000 per day, with the provision scheduled to expire on Jan. 20, 2029.
• Democrats rejected the language because it would give the Justice Department exclusive enforcement authority. They have pushed for state attorneys general to have an independent enforcement role, which the Republican proposal excludes. Both Democrats who backed the bill in committee opposed the revised provision.
• Sen. Cynthia Lummis continues to participate in negotiations surrounding the crypto legislation. The key challenge remains reaching a compromise on the ethics provision before the bill returns to the Senate floor.

CLARITY Act Faces Tight September Deadline

• The Senate’s September session gives the CLARITY Act a limited opportunity to move ahead. Floor time will also be needed for appropriations deadlines and other legislative matters, while any Senate version would still require approval from the House.
• Ian Katz, managing partner at Capital Alpha, told The Hill that the legislation faces a tougher path as September nears. With only a few legislative days available and numerous competing priorities, Katz said the bill is not necessarily finished but currently has weak prospects.
• Lawmakers could potentially pursue a year-end alternative by attaching the CLARITY Act, or selected portions of it, to must-pass measures such as appropriations legislation or the defense authorization bill. Lobbyists have reportedly discussed the idea, although no senator has confirmed it. Such a move would still leave the underlying disagreements over votes and enforcement unresolved.