US Senate Shelves Crypto Regulation Bill Amid Partisan Tensions

The Digital Asset Market Clarity Act, a landmark piece of financial legislation, is losing momentum in the US Senate. Senate Majority Leader John Thune has effectively shelved the bill until after the August recess, prioritizing nominations and Russia sanctions over what was supposed to be a comprehensive crypto regulation.

The bill had gained real traction not long ago, with the House passing its version, H.R. 3633, with a surprisingly bipartisan vote of 294-134 on July 17, 2025. Senate committees approved related measures in early 2026.

Galaxy Research has slashed the odds of the bill actually becoming law to 30%, down from 50% just a month ago, citing a narrowing legislative window as the primary reason for this downgrade.

The new draft of the bill includes an ethics provision with a sunset clause set for 2029, designed to limit public officials from engaging in activities directly tied to digital assets while they hold office. However, key Democratic senators have expressed concerns that the measure falls short on three fronts: ethics enforcement, illicit finance safeguards, and consumer protections.