Senate Delays Clarity Act Vote Until September Amid Crypto Industry Influence

The US Senate has delayed voting on the Clarity Act, a bill aimed at regulating the crypto market structure, until September. The chamber leaves for a month-long recess without holding a procedural vote on the bill, despite Majority Leader John Thune's efforts to push it through.

Republicans need roughly six Democratic crossovers to clear the 60-vote threshold, but so far only two Democrats have crossed: Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD). The delay buys time for Senate Democrats to assemble the necessary votes, with a source familiar with the matter citing reluctance to vote ahead of the midterms due to the crypto industry's growing political influence.

The Clarity Act has been stuck in limbo for months, with ethics provisions covering President Donald Trump's crypto holdings remaining a major sticking point. The bill would require Trump to divest from crypto-related businesses and potentially defer federal capital gains tax on those holdings. Without deferral, Trump would face a 20% rate, but forced divestiture could let him defer the tax for years, with gains escaping tax entirely if held until death.

Industry groups are determined to see the bill pass, with Crypto Council for Innovation CEO Ji Hun Kim noting that every day without a framework 'pushes American users and builders offshore and leaves consumers at risk.' SEC Chair Paul Atkins has also stated that the agency is ready to write crypto rules itself if the legislation stalls.