The delayed CLARITY Act is reportedly being pushed aside as the US Senate turns its attention to a Russia sanctions bill.
According to CoinDesk, the chamber is set to prioritise the Russia sanctions bill, which was a priority of Senator Lindsey Graham, who passed earlier this month. His funeral is set to take place later today (28 July).
The CLARITY Act is the US government’s attempt to establish a clear regulatory framework for digital assets, defining how cryptocurrencies and other crypto products should be classified and which regulators should oversee different parts of the market.
The act missed its 4 July signing target, which the White House tied to the country’s 250th anniversary celebrations. It was then given a deadline of 7 August, but this is looking unlikely too.
The bill has proven to be a source of ongoing contention, with senators unable to agree on the ethics provision governing politicians’ crypto holdings. Adding to the issues are US President Donald Trump‘s own crypto ties.
On 8 August, the chamber will break for summer and will only return in September, meaning that if senators cannot reach agreement in the time they have left, the bill will be pushed to autumn at the earliest.
CLARITY Act: What is still unresolved
Trump agreed last week to what the White House described as the most comprehensive ethics provision in history, restricting senior federal officials from holding or acquiring crypto and digital assets.
Democrats, however, said the language didn’t properly address the President’s existing crypto ties, which include USD1, the stablecoin issued by World Liberty Financial, a company founded by his sons Donald Trump Jr. and Eric Trump.
Senators including Elizabeth Warren said that the bill in its current form would allow Trump and his family to profit from the crypto industry while setting its regulatory framework. Democrats have yet to receive the full text of the agreed ethics provision, which has been delayed for over a week.
“Leader [John] Thune has indicated he aims to hold a floor vote on crypto market structure legislation this month, despite significant flaws in the current draft that have raised concerns about risks to national security, financial stability, consumer protection, and ethics,” said Warren.
Differences between the Senate Banking and Senate Agriculture Committee versions of the bill around how digital assets are classified and which regulators oversee different parts of the market also remain unresolved.
Several Democrat senators who crossed the aisle during the May committee stage have since indicated their floor support is conditional on further changes.
What happens if August fails
Missing the August deadline would not mean the end of the CLARITY Act, but it would complicate its path to becoming law.
The Senate and House both return for a few weeks in September, though available floor time is limited.
After the November elections, Congress enters its lame duck session, where legislation can pass in a final burst of dealmaking, but can also stall. Even if the Senate passes the bill, it must return to the House for another approval vote.
If the CLARITY Act fails to pass in 2026, the next best routes to regulatory legitimacy for the crypto industry are the ongoing implementation of the Genius Act and the policy work underway at the Securities and Exchange Commission and the Commodity Futures Trading Commission. However, neither offers the full market structure framework the CLARITY Act was positioned to provide.
