CLARITY Act Stalls as Senate Runs Out of Time Before August Recess

The CLARITY Act is facing uncertainty as it nears the end of its two working days before the August recess. Senate Majority Leader John Thune did not file the required cloture motion, putting the bill at risk. Republican Sen. Josh Hawley has become the first GOP senator to oppose the bill due to banking concerns.

Despite this setback, some senators believe a procedural vote remains possible this week. However, without the cloture motion, the Senate can no longer follow its normal process to hold a vote before lawmakers leave for the August 10 recess.

The delay has sharply reduced the bill's odds of moving forward this week. Republican Sen. Josh Hawley plans to vote against the CLARITY Act, citing concerns raised by banking groups.

Negotiations have not completely stopped, with Republican Senator Thom Tillis and Democratic Senator Ruben Gallego submitting a revised bipartisan proposal to the White House that focuses on the controversial crypto ethics provisions tied to the legislation. The White House has started reviewing this new proposal.