Senate Postpones Crypto Regulation Bill Vote Until September

The Senate's failure to vote on the Clarity Act before its August recess has significantly diminished its chances of passing, despite the crypto industry remaining hopeful.

Ian Katz, managing partner at Capital Alpha, said the odds of passage drop in September, citing a tight legislative schedule and competing priorities. 'You just have a tight window,' he noted. 'There aren't many legislative days. There's always other issues competing for attention.'

The Senate Majority Leader John Thune (R-S.D.) announced on Thursday that the Clarity Act would be brought to the floor in September, but Senator Thom Tillis (R-N.C.) said the likelihood of passage 'probably drops in half' after the decision.

The holdup is centered around an ethics provision, with Senate Democrats pushing for state attorneys general to enforce a ban on public officials profiting from crypto-related ventures. The White House has approved a similar proposal that would task the Justice Department with enforcement, but its acceptance by Trump remains uncertain.