clarity

White House cryptocurrency advisor Patrick Witt posted on the X platform that the U.S. Congress has been pushing for cryptocurrency market structure legislation for many years, and the Senate has been negotiating the CLARITY Act since last summer. However, in the past week, Chuck Schumer and so-called "pro-cryptocurrency Democrats" blocked the bill from undergoing procedural voting before the recess and requested further delays.Patrick Witt warned that if the bill does not make progress before September 15, the likelihood of it passing in the future will be significantly reduced.

U.S. Senate Majority Leader John Thune has moved to terminate the debate procedure on advancing the Clarity for Digital Assets Markets Act (CLARITY Act) into Senate consideration, with the Senate scheduled to hold a procedural vote on September 15. The vote is expected to take place at 2:15 PM Eastern Time after the Senate reconvenes that day.The motion requires 60 votes in support, meaning Republican senators will need Democratic support to pass the procedural threshold. The two parties are currently negotiating on issues such as ethical standards and stablecoin reward rules, with related disagreements causing the bill to fail to reach consensus before the August recess.This vote only concerns whether to initiate the bill's consideration process and does not represent a final vote on the bill or guarantee its passage in the Senate. The CLARITY Act aims to establish a federal market structure for digital assets and clarify the conditions under which certain crypto assets are subject to securities or commodities laws, as well as the regulatory responsibilities of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.

Zach Pandl, the head of research at Grayscale, published an analysis stating that although the Clarity Act may still reach an agreement on a technical level, the Senate schedule and the political reality of an election year make the likelihood of passing it this year very low, but the impact is limited. The failure of the bill will not immediately affect the operation of major blockchains, the demand for Bitcoin as a store of value, or the growth of stablecoin payments— the industry has been developing without this bill for nearly 17 years. However, the lack of comprehensive market structure legislation may hinder new investment activities in the U.S., including the development of the tokenized securities market and the regulatory framework for digital asset intermediaries. Under the current administration, regulatory guidance has supported the industry through measures such as new rules for institutional custody, improved bank access, staking policies, and the crypto ETP framework. The SEC and other regulatory agencies are expected to continue filling gaps through rulemaking. The lack of comprehensive regulation may lead to more entrepreneurial activities flowing overseas.

According to CoinDesk, U.S. Senate Majority Leader John Thune officially submitted a procedural motion for the Clarity Act after an all-night voting session on Saturday morning, initiating the first procedural voting process for the bill in the Senate. This move makes it possible for the Clarity Act to enter procedural voting immediately after the September recess, but the bill has already missed the voting window before the August recess, and passing in September still faces challenges.The Clarity Act requires at least 60 votes in support, and currently needs the backing of at least 10 Democratic senators, but there are still disagreements over the ethical clause that prohibits senior government officials (including President Trump) from participating in cryptocurrency projects. Bipartisan senators have submitted a revised proposal to the White House, but it has been on hold for at least a week without a response. Additionally, controversies surrounding illegal financial protections and stablecoin earnings remain unresolved. If the procedural vote fails in September, the chances of the Clarity Act passing this year will be extremely slim, and the new Congress in 2027 will need to reintroduce the legislation.

The U.S. Senate has postponed the vote on the CLARITY Act until after the summer recess, increasing uncertainty about the bill's passage in the short term.The CLARITY Act had previously received bipartisan support in the House of Representatives and aims to establish a federal regulatory framework for digital assets, clarify the responsibilities of different regulatory agencies, and promote the further integration of crypto assets into the U.S. financial system.North Carolina Republican Senator Thom Tillis stated that with the vote postponed until September, the probability of the bill's final passage "may have decreased by 50%." Wyoming Republican Senator Cynthia Lummis, who is responsible for pushing the negotiations, indicated that discussions have been ongoing for nearly 11 months, the bill text has increased by about 300 pages, and it has responded to numerous amendment requests from Democrats, and it should now enter the voting phase.Currently, Democrats still oppose the existing version, with the main disagreement centered on the restrictions on government officials' interests in crypto assets. Democrats believe that the current version does not adequately limit federal officials' investments and promotion of crypto assets, nor does it require relevant personnel to fully divest from related holdings, while also seeking to grant state attorneys general stronger enforcement powers.Some Democratic and Republican lawmakers had previously pushed for the inclusion of stricter ethical oversight provisions, but negotiations are still ongoing. Democrats are particularly concerned about the connections between Trump and his family with crypto projects like World Liberty Financial.Previously, the crypto industry hoped the Senate could advance procedural voting before the summer recess to adjust political investments during the 2026 midterm elections based on legislative progress. Data shows that the crypto industry's main political action committee, Fairshake, held nearly $200 million in cash reserves at the beginning of this cycle.

Bitwise Chief Investment Officer Matt Hougan stated that if the Clarity Act does not pass this week, the market may experience a brief fluctuation, but it will be prepared for a rebound in the fall.

Founder of Strategy Michael Saylor posted on X platform: "Bitcoin does not need the Clarity Act; the United States needs clarity."

According to Bloomberg, to advance the landmark cryptocurrency legislation "Clarity Act," bipartisan senators have proposed an ethical provision to Trump that may include a clause allowing the president to defer capital gains tax on his cryptocurrency assets. The proposal requires the president to divest from cryptocurrency-related businesses, and the relevant terms are still being negotiated between the White House and lawmakers. In June 2025, Trump reported that his family's cryptocurrency business generated over $1.4 billion in revenue, indicating that most of his income has come from digital assets benefiting from his own policies. Democratic senators have made strong ethical provisions a condition for supporting the bill, which aims to clarify the regulatory authority over the cryptocurrency industry.

According to Politico, the U.S. Senate has decided to postpone the vote on the Clarity Act until September.

Punchbowl News reporters posted on the X platform that negotiations in the U.S. Senate regarding the CLARITY Act are affecting the legislative process before the recess. The Democratic leadership continues to push for a delay in the procedural vote on the cryptocurrency regulation bill, while Senate Minority Leader Chuck Schumer hopes to gain more time for further negotiations.Meanwhile, Republicans are calling for a swift move to a vote. Both sides are still coordinating on the content of the bill and related provisions, and there remains uncertainty about whether the CLARITY Act will enter the voting stage before the Senate recess.

According to BeInCrypto, Tim Scott, the chairman of the U.S. Senate Banking Committee, stated that the CLARITY Act, aimed at regulating the cryptocurrency market, will be voted on before Congress goes into recess, and "there will undoubtedly be a vote."In an interview with Fox News, Scott mentioned that the Senate might extend its working hours, not limited to the next two days, to push forward the relevant legislation. He noted that there is a consensus forming within the Republican Party regarding the bill and believes that advancing a cryptocurrency regulatory framework "is in the interest of the United States."Tim Scott stated, "We will get this done."The CLARITY Act aims to further clarify the regulatory framework for digital assets in the United States, delineating the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the cryptocurrency market. Supporters believe that the bill will provide clearer rules for the industry and help the U.S. maintain its competitiveness in the digital asset space.Currently, the bill still faces internal congressional disputes regarding consumer protection, regulatory authority, and market risks. If ultimately passed, it will be an important step in building the U.S. cryptocurrency regulatory system.

According to CoinDesk, U.S. Senator Elizabeth Warren stated that she supports pushing for cryptocurrency-related legislation but does not support the current CLARITY Act, believing that the bill fails to adequately address key issues such as corruption, consumer protection, national security, and economic risks.Warren pointed out that the crypto industry needs a clear regulatory framework, but the regulatory plan must ensure investor rights and the safety of the financial system. She believes that the CLARITY Act is lacking in preventing conflicts of interest, protecting consumers, and reducing potential systemic risks.The CLARITY Act aims to further clarify the division of regulatory responsibilities for the U.S. digital asset market, establishing a clearer legal framework for cryptocurrency asset trading, issuance, and market participants. Supporters believe that the bill helps enhance industry certainty and promote innovation.However, some Democratic lawmakers, including Warren, have previously expressed concerns about cryptocurrency regulatory legislation, arguing that some proposals could weaken the power of regulatory agencies and create regulatory arbitrage opportunities for large crypto companies.Warren has long taken a cautious stance on crypto assets, focusing on consumer protection, financial stability, and the risks of illegal activities in the crypto market. This statement indicates that U.S. cryptocurrency regulatory legislation still faces a struggle between the two parties and different interest groups.

According to CoinDesk, Summer Mersinger, CEO of the Blockchain Association and former commissioner of the U.S. Commodity Futures Trading Commission (CFTC), published an article responding to the Wall Street Journal's editorial on August 4, accusing it of a fundamental misreading of the Clarity Act.Mersinger stated that the bill explicitly prohibits stablecoin rewards that are equivalent to bank deposit interest but allows for rewards similar to credit card points and user behavior-based incentive mechanisms. From the perspective of DeFi regulation, Section 10301 of the bill requires the SEC to establish regulatory rules for protocols that are "nominally decentralized and substantially controllable," which does not equate to regulatory exemption; Section 10201 includes digital commodity brokers under all reporting obligations of the Bank Secrecy Act and allocates $3 billion for state-level enforcement, contrary to the Wall Street Journal's accusations of insufficient regulation of illegal finance.Addressing concerns about the "shadow market" for tokenized securities, Mersinger emphasized that Section 10505 of the bill clearly states that securities remain subject to SEC oversight even after settlement on the blockchain. She believes that the Wall Street Journal is essentially defending the monopoly position of traditional financial institutions, which conflicts with the free market principles that the paper has consistently advocated.

According to Cryptopolitan, the U.S. Senate will enter a recess on August 7, and the window for the CLARITY Act to pass before then is extremely limited. If a vote is not completed this week, the next feasible window will be pushed to September, and if missed again, it may be delayed until after the midterm elections, potentially not being realized until 2027. The main disagreement in the bill currently lies in the Democrats' insistence on including ethical provisions for cryptocurrency professionals targeting senior government officials, but the merged draft has not yet incorporated relevant statements.During this regulatory vacuum, large institutions like Coinbase and Circle are better able to adapt to uncertain environments due to their capital strength—ARK Invest increased its holdings in the aforementioned two companies this week, and Circle also received approval for a federal national trust bank license in July—while small and medium-sized cryptocurrency companies and DeFi projects continue to face pressure. In terms of the market, Polymarket data shows that the probability of the CLARITY Act passing in 2026 has dropped to 23%, a significant decline from the 67%–75% predicted by Galaxy Research in mid-May.

Senator Lummis stated that the Senate will vote on the "Digital Asset Market Clarity Act" before the recess, but the bill still faces obstacles such as the Democratic ethics provisions controversy and the 60-vote threshold.

According to crypto journalist Eleanor Terrett, U.S. Senate Majority Leader John Thune has submitted a motion to invoke cloture on advancing legislation related to college sports. This move is seen as an indication that there is still no bipartisan consensus around the regulatory framework for the crypto industry, the CLARITY Act.Previously, the market had hoped that Congress could push the CLARITY Act forward to provide a clearer legal framework for issues such as the structure of the digital asset market and the division of regulatory authority. However, the latest developments show that there are still divisions within the Senate.Analysts believe that if the two parties cannot reach an agreement on the CLARITY Act, the timeline for advancing the bill may be further delayed. Nevertheless, supporters still believe that the bill is significant for clarifying the regulatory boundaries for crypto assets in the U.S. and reducing uncertainty in the industry.

According to Bitcoin Archive, SEC Commissioner Hester Peirce stated that she remains optimistic about the U.S. Congress passing the CLARITY Act and mentioned that there is still much that can be done even if the bill does not pass.Hester Peirce pointed out that the SEC will continue to advance relevant work, and regardless of whether the bill passes, the SEC will strive to push forward; even if the CLARITY Act fails to materialize, regulators still have significant room to promote the construction of a digital asset regulatory framework.Hester Peirce has previously called for clearer regulatory rules for crypto assets, believing that a clear market structure helps the U.S. maintain competitiveness in the digital asset space and reduces the long-term uncertainty faced by the industry.

According to CoinDesk, U.S. Senator Bill Hagerty is urging the Senate to pass the CLARITY Act (Digital Asset Market Structure Act) as soon as possible, stating that the U.S. cannot fall behind in the digital asset space. He believes that establishing a clear regulatory framework is crucial for promoting innovation in U.S. digital assets and maintaining global competitiveness.The CLARITY Act aims to clarify the division of regulatory responsibilities in the U.S. digital asset market, providing a more defined rules framework for the crypto industry. Currently, the bill is awaiting further review by the Senate.

According to Cointelegraph, investment firm Bernstein stated that the prospects for the passage of the U.S. CLARITY Act are declining. If the Senate fails to advance the bill before the recess, it may trigger a short-term negative reaction in the market, putting further pressure on the valuations of Bitcoin and the overall crypto assets.Bernstein pointed out that the failure of the bill could lead to a market "instinctive sell-off," but in the medium to long term, it may also prompt the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to accelerate regulatory actions, including clarifying token classification rules, developing a regulatory framework for decentralized finance (DeFi), and advancing token issuance exemption mechanisms.Bernstein expects that the crypto market may bottom out between the end of the third quarter and the beginning of the fourth quarter, gradually regaining momentum before the U.S. midterm elections.Currently, market expectations for the CLARITY Act to be signed into law by the end of 2026 continue to decline. Data from prediction platform Polymarket shows that the probability of the bill passing this year has dropped to 31%, down 7 percentage points from a week ago and down 9 percentage points from the past month, with related betting amounts around $3.7 million.The CLARITY Act aims to establish the first regulatory framework for the digital asset market in the U.S., but it faces opposition from the banking industry due to stablecoin yield provisions. Previously, Galaxy Digital had lowered the probability of the bill being enacted by 2026 to 50% and warned that the Senate's advancement timeline is shrinking.