The U.S. Senate will not consider a vote on the Clarity Act before its August recess, dealing a setback to hopes that the landmark crypto market structure legislation could be enacted this year.
Although lawmakers will leave Washington without passing the bill this month, people familiar with the matter said supporters still expect the Senate to revisit the legislation in September once lawmakers return.
The crypto industry had urged senators to extend their session to resolve remaining disagreements over the Digital Asset Market Clarity Act. However, lawmakers from both parties were unable to finalize key issues before the break. The Senate is scheduled to return on Sept. 14, 2026, giving members several weeks to address the Clarity Act and other unfinished legislative matters.
Senate Majority Leader John Thune confirmed through a spokesperson that the chamber would not hold a vote on the bill in August but said lawmakers would make it a priority when they return.
A statement shared on social media indicated that Democrats were unwilling to support an August vote. It also noted that Thune had been coordinating with the bill’s sponsors, including Senator Cynthia Lummis, to prepare the legislation for action during the September session.
Before heading into recess, the Senate’s final votes are expected to focus on a temporary government funding measure, a Russia sanctions proposal backed by Senator Lindsey Graham, and several nominations.
Politico reported Thursday that senators were unlikely to hold a first procedural vote on the Clarity Act before the August break.
Cody Carbone, CEO of crypto industry group Digital Chamber, said the postponement was disappointing but emphasized that work on the legislation would continue. He said advocates would use the coming weeks to negotiate remaining differences and build support for a vote when Congress returns.
Ji Hun Kim, CEO of the Crypto Council for Innovation, also expressed disappointment over the delay but highlighted the progress made on the bill. He warned that the lack of a clear regulatory framework could push American crypto businesses and users abroad while leaving consumers exposed to greater risks.
The Clarity Act became stalled amid several other Senate priorities, including government funding negotiations, sanctions legislation, pending nominations, and the confirmation process for Todd Blanche as attorney general.
Thune said the Senate would proceed with votes on the funding extension, sanctions legislation, and nominations on Friday morning, along with an amendment vote related to the sanctions bill. Those measures had agreements in place to limit debate time, while the Clarity Act did not have a similar agreement, according to sources familiar with the process.
A source told CoinDesk that Senate Democrats did not want to vote on the crypto legislation before the midterm elections and were prepared to delay other Senate business unless the Clarity Act was postponed until September.
The bill requires 60 votes to pass, but it remains unclear whether it currently has enough support. Several Republican senators have publicly raised objections, while Democrats continue pushing for stronger ethics rules related to President Donald Trump.
Many of the remaining challenges are now centered on political disagreements rather than the technical details of the legislation.
The bill has already cleared most major hurdles, receiving approval from both the Senate Banking Committee and the Agriculture Committee. The biggest unresolved issue involves an ethics provision targeting Trump, who disclosed earning more than $1 billion from crypto ventures in 2025.
Trump previously accepted an ethics proposal negotiated by Senator Cynthia Lummis, but some Democrats and Republicans, including Senator Thom Tillis, argued that the language needed to be strengthened. Tillis and Senator Ruben Gallego drafted an alternative proposal and sent it to the White House in late July, though officials have not publicly responded.
Other unresolved matters include Agriculture Committee-related provisions, law enforcement concerns, and ongoing discussions about stablecoin rewards and yield programs.
The next major procedural step will be determining when Thune files a cloture motion for the Clarity Act. If filed before the Senate leaves for recess, lawmakers could begin the voting process as early as Sept. 15. If filed after senators return, the first procedural vote would likely occur no earlier than Sept. 16 under Senate rules.
