CLARITY Act Stalls in Senate Amid Ongoing Political Divide

The US Senate has put the crypto market structure bill, known as the CLARITY Act, on hold until September. The delay is due to ongoing political divisions between Democrats and Republicans over the legislation.

Senate Majority Leader John Thune confirmed that there will be no vote on the CLARITY Act in August, with the measure expected to be considered once the Senate returns from recess. Thune cited Democratic opposition as a major reason for the delay, stating that they are 'insistent on no CLARITY vote.'

The CLARITY Act requires 60 votes to advance in the Senate and needs support from both parties to pass. Democrats have been pushing for stronger safeguards to prevent President Donald Trump from benefiting financially from crypto while in office.

Bitwise Chief Investment Officer Matt Hougan believes that missing the August vote is not a major blow to the industry's long-term growth, citing uncertainty surrounding the bill as the biggest concern. He expects lawmakers to revive the legislation when Congress returns in September or during the year-end session.