CLARITY Act Stalls as Senators Clash Over Banking Concerns

The CLARITY Act is facing uncertainty as it approaches its last two working days before the August recess. Senate Majority Leader John Thune failed to file a cloture motion, which has put the bill at risk of being delayed or even blocked. Republican Senator Josh Hawley has become the first GOP senator to publicly oppose the bill due to banking concerns.

This move comes as negotiations between lawmakers and the White House continue on a revised bipartisan proposal focused on crypto ethics provisions. The proposal, submitted by Senators Tillis and Gallego, is being reviewed by White House officials. According to Tillis, 'We've got people working with the White House right now... They're going through some of the lines right now.'

The delay has reduced the bill's odds of moving forward this week, but some senators believe that a procedural vote remains possible. Prediction markets have also reflected the uncertainty, with the chances of the Senate voting on the CLARITY Act before the August recess dropping to 10% from 22% earlier in the week.