Senate Postpones CLARITY Act, Markets React to Record-Low Law Odds

The U.S. Senate has put on hold the CLARITY Act, a bill aimed at providing regulatory clarity for the cryptocurrency industry. The delay is due to ongoing negotiations over ethics provisions, specifically regarding federal officials and leaders issuing or sponsoring cryptocurrencies.

Senate Majority Leader John Thune confirmed that the bill will not receive a floor vote before the August recess, pushing expectations for a definitive vote into September. This development has stalled market momentum, with prediction markets like Kalshi pricing the odds of the CLARITY Act becoming law in 2026 at a record-low 20%.

Institutional analysts note that much of the pessimism had already been factored into asset prices following earlier warnings from firms like Bernstein. Despite this, traders and investors are closely monitoring September as the next major pivot window for U.S. digital asset policy.