The U.S. Senate will not hold a vote on the Clarity Act before its August recess, lowering expectations that the long-awaited crypto market structure bill could become law before the end of the year.
While lawmakers are leaving Washington without final action on the legislation, industry representatives and supporters of the bill remain hopeful that the Senate will take up the measure in September after returning from its break, according to people familiar with the matter.
The crypto sector had pushed for the Senate to remain in session longer to address unresolved concerns surrounding the Digital Asset Market Clarity Act. However, lawmakers from both parties were unable to reach agreement on several key issues before the recess. Senators are scheduled to return on Sept. 14, 2026, with about three weeks available to revisit the bill and other pending legislative priorities.
Senate Majority Leader John Thune confirmed through a spokesperson that the chamber would not vote on the Clarity Act in August but said lawmakers would prioritize the legislation when they return.
A statement shared online said Democratic senators were opposed to moving ahead with an August vote. It added that Thune had been working with the bill’s sponsors, including Senator Cynthia Lummis, to prepare the legislation for consideration once the Senate resumes work.
Before leaving for the break, senators are expected to vote on a government funding extension aimed at keeping federal operations running through the midterm elections, a Russia sanctions bill backed by Senator Lindsey Graham, and several nominations on Friday, the final scheduled day before recess.
Politico reported Thursday that the Senate was not expected to conduct an initial vote on the Clarity Act before lawmakers departed.
Cody Carbone, CEO of crypto advocacy organization Digital Chamber, said the delay was not the outcome supporters wanted but stressed that efforts to advance the legislation would continue. He said industry groups would spend the coming weeks working with lawmakers to resolve remaining disagreements and prepare the bill for a vote in September.
Ji Hun Kim, CEO of the Crypto Council for Innovation, described the postponement as disappointing but noted that the legislation had made significant progress. He warned that continued delays in establishing clear crypto rules could drive U.S. users and companies overseas while increasing risks for consumers.
The Clarity Act faced competition from several other Senate priorities, including government funding negotiations, sanctions legislation, a package of nominations, and the confirmation process for Todd Blanche as attorney general.
Thune announced that the Senate would move forward with votes on the funding resolution, sanctions measure, and nominations at 10 a.m. Friday, along with an amendment vote related to the sanctions bill. Those matters had agreements limiting debate time, while the Clarity Act had not secured such an arrangement, according to individuals familiar with the discussions.
One source told CoinDesk that Senate Democrats preferred not to vote on the legislation before the midterm elections and were prepared to delay other Senate business if the Clarity Act was not pushed into September.
For the bill to advance, it would need 60 votes in the Senate. However, its current level of support remains uncertain, with some Republican senators publicly opposing aspects of the proposal and Democrats continuing to demand stricter ethics provisions involving President Donald Trump.
Many of the remaining disputes surrounding the legislation are now political rather than related to the technical details of the bill.
Most major policy disagreements have already been resolved, and the Clarity Act received approval from both the Senate Banking Committee and the Agriculture Committee. The primary remaining dispute involves an ethics amendment targeting Trump, who has reported earning more than $1 billion from crypto-related businesses in 2025.
Trump previously agreed to an ethics proposal negotiated by Senator Cynthia Lummis, but some Democrats and Republicans, including Senator Thom Tillis, argued that the measure was insufficient. Tillis and Senator Ruben Gallego created an alternative proposal and sent it to the White House in late July, though no public response had been issued.
Other unresolved areas include Agriculture Committee provisions, law enforcement-related concerns, and ongoing discussions over stablecoin rewards and yield mechanisms.
The next important procedural decision will be when Thune files a cloture motion on the Clarity Act. If filed before the recess begins, the Senate could hold its first procedural vote as early as Sept. 15. If the filing happens after lawmakers return, the earliest possible vote would likely take place on Sept. 16 under Senate procedures.
