US Senate will resume negotiations on the CLARITY Act in September

The US Senate is expected to enter the August recess without voting on the CLARITY Act, the crypto market-structure legislation, thereby postponing further action until September at the earliest.

The majority leader, Republican Senator John Thune, confirmed that the Senate would delay voting on the legislation until after the recess, blaming Democrats for impeding its progress. He, however, insisted that the bill would be high on the agenda after the break.

He contended, “The Dems are insistent on no Clarity vote. I worked with sponsors of the bill. Senator Lummis was great, and we’re getting that queued up first thing when we come back.”

The Senate will discuss the bill in September 

On X, Politico also confirmed that US senators will deliberate further on the CLARITY Act after the break. Earlier on Thursday, it had also reported that the Senate was unlikely to hold a preliminary vote on the legislation before the break.

Ideally, crypto companies and advocates had hoped senators would stick around longer to resolve differences over the Digital Asset Market Clarity Act. However, lawmakers on both sides still have major concerns about the bill, and unfortunately, time has run out.

Lawmakers are expected back on September 14, 2026, giving senators three weeks to continue negotiations and address the remaining agenda.

Speaking on the delay, nonetheless, crypto trade group Digital Chamber CEO Cody Carbone is optimistic. He said, “While this isn’t the result any of us hoped for when we began the week, the fight is far from over. The next few weeks, we will continue to work to find the last pieces of common ground needed to set up a successful vote when Congress returns in September.”

The postponement also extends uncertainty for crypto exchanges, token issuers, and investors who have been waiting for clearer federal rules governing digital assets.

Many industry participants had viewed the August vote as a key milestone after months of negotiations between lawmakers, regulators, and industry groups. As a result, companies will likely continue operating under the existing patchwork of regulations for at least several more weeks.

The CLARITY Act had stalled over various issues 

Progress on the Clarity Act has stalled amid several other issues before the Senate, including a continuing resolution to keep the government funded, Russian sanctions legislation, a batch of nominations, and Todd Blanche’s nomination to lead the Justice Department. 

According to Thune, the Senate would take votes on the first three measures on Friday at 10 a.m., along with an amendment to the Russia sanctions bill, after reaching an agreement on how long debate could continue.

The vast majority of disagreements over the bill have now been resolved, with both the Senate Banking Committee and Agriculture Committee approving it separately. The biggest unresolved matter was an ethics provision related to Trump, who disclosed that he earned more than $1 billion from his crypto ventures in 2025. 

Although President Trump backed an ethics provision brokered by Senator Cynthia Lummis, Democrats and several Republicans, including Thom Tillis, were not satisfied with the language.

Tillis and Ruben Gallego drafted their own version and said they sent it to the White House at the end of July. No public response had come from the White House as of press time.

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