Crypto Bull Market at Risk as CLARITY Act Hits Wall in US Senate

The prospects for the Digital Asset Market Clarity Act (CLARITY Act) have taken a hit as the US Senate has moved on to other matters, leaving little time for debate before its August recess.

The bill's passage would provide much-needed clarity and regulation for the cryptocurrency market, but it now faces an uncertain future due to various obstacles.

The House passed its version of the CLARITY Act in July 2025 with bipartisan support, while the Senate Banking Committee approved a revised text in May 2026 by a 15-9 vote. However, Republicans published a new version on July 22, creating expectations for a floor vote before the August recess, which is now in doubt.

The bill's prospects have been hindered by several walls: the Senate's limited time before its recess, Democrats' rejection of an ethics compromise that would temporarily restrict the president and Congress members from issuing or promoting digital assets, and banking system opposition to stablecoin rewards.