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Senate Puts CLARITY Act on Hold as Recess and Nominations Take Priority

The delay shrinks the window for the bipartisan crypto market‑structure bill and raises the prospect of agency rulemaking or a delayed fight in the fall or next year.

Overview

  • Senate leaders moved floor time on Tuesday to confirm 74 presidential nominees and advance a Russia sanctions package, which effectively shelved the CLARITY Act before the August 8 recess.
  • Negotiators have not resolved core disputes over an ethics ban on officials’ crypto ties, whether state attorneys general can enforce that ban, and limits on yield‑bearing stablecoin products.
  • Prediction markets and analysts slashed passage odds after the delay, with Polymarket retreating to about 27% and Galaxy Digital estimating roughly 30% likelihood of enactment in 2026.
  • SEC Chair Paul Atkins offered technical help to Congress and warned the agency could pursue rulemaking to fill gaps if lawmakers do not act, signaling a possible regulatory fallback.
  • Senators Ruben Gallego and Thom Tillis are preparing revised ethics language while the bill would still need roughly eight to ten Democratic crossover votes to clear a 60‑vote filibuster threshold, pushing any real vote to September or beyond.