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CLARITY Act misses cloture window as talks drag

2026-08-05 18:48 UTCBy AlphaScala Research DeskSource reporting: Crypto newsEditorial standards

CLARITY Act misses cloture window as talks drag

Thune skips CLARITY Act cloture, delaying crypto bill. Talks over ethics rules, stablecoins continue. Kalshi sees 41% chance of passage by July 2027.

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Senate Majority Leader John Thune filed cloture Wednesday on the motion to proceed to the Protect College Sports Act of 2026 and on a substitute amendment to the continuing-resolution vehicle, according to the U.S. Senate Daily Press. He also filed cloture on Todd Blanche's nomination to be attorney general. The majority leader made no corresponding filing for the CLARITY Act, leaving the crypto market structure bill without the procedural step needed to begin floor debate.

Cloture on a motion to proceed limits debate and allows the Senate to consider legislation. The motion requires 60 votes, meaning Republicans cannot advance the bill without Democratic support. Crypto journalist Eleanor Terrett said Thune's decision to move the college sports legislation indicated that negotiators had not reached a bipartisan agreement. "Thune has filed cloture on the motion to proceed to the college sports bill," Terrett wrote. She added that it "signals there's still no bipartisan agreement on the Clarity Act."

The omission does not formally kill the bill. It reduces the time available for debate before senators leave Washington for the August recess. The delay has drawn warnings that the US could lose its edge in crypto innovation. CLARITY Act delay risks US crypto lead, Haridopolos warns.

Thune later indicated the CLARITY Act had not been abandoned. He described the delay as a matter of sequencing. "We're sequencing it. There are some things still out there that we want to do," Thune said. His remarks suggested Senate leaders were still seeking an agreement capable of attracting support from both parties. Thune had previously said he expected market structure legislation to receive a vote, though he acknowledged the chamber faced a crowded schedule. "I think market structure we'll get a vote on. Whether we can get on it or not, we'll see," he told reporters on Aug. 3.

Ethics restrictions involving elected officials' crypto holdings are among the unresolved issues. Stablecoin rewards and protections for noncustodial blockchain developers have also featured in negotiations. Senator Elizabeth Warren has demanded stronger conflict-of-interest rules covering the president, vice president, members of Congress, senior officials and their families. Republicans need at least seven Democratic votes if all 53 GOP senators support cloture.

Bitwise Chief Investment Officer Matt Hougan warned that missing the pre-recess window could leave the bill in a "walking dead" phase. The legislation could stay active, then face a months-long delay and greater procedural difficulties later in 2026. Hougan argued that the digital asset industry would continue expanding without immediate congressional action. Securities and Exchange Commission rulemaking could provide an alternative path while financial institutions increase their involvement in crypto, he said.

SEC Commissioner Hester Peirce expressed confidence that work on digital asset rules would continue. "I'm still optimistic that the bill will get finished," Peirce said. She said legislation would provide clearer jurisdictional boundaries for investors, companies and regulators. Peirce added that the SEC could continue addressing crypto custody and fundraising regardless of the bill's fate.

Prediction-market traders have become more cautious as the Senate's procedural window narrows. Kalshi placed the probability of enactment before July 1, 2027, at 41%. The odds increased to 58% for passage before Oct. 1, 2027, and 65% before Jan. 1, 2028. Those contracts indicate that traders see a longer legislative timeline as more likely than enactment during 2026.

The CLARITY Act would define the roles of the SEC and Commodity Futures Trading Commission in overseeing US digital asset markets. Without congressional action, regulators will continue working under existing securities and commodities laws while the jurisdictional divide remains unsettled. Thune has previously said he expects a vote on market structure legislation. Whether that vote comes before the August recess or later in the year remains tied to the pace of bipartisan talks.

CLARITY Act misses cloture window as talks drag