CLARITY Act Misses July 4, Senate Eyes August 7 Deadline

The CLARITY Act did not make its July 4 signing target. The Senate now faces an August 7 deadline to release a final draft before the summer recess, after missing the earlier date.

Republicans need at least seven Democrat votes to reach the 60-vote threshold. Two unresolved issues are blocking that support. The first involves ethical standards tied to President Trump's cryptocurrency income. The second is a debate over how much regulation should apply to products offered by crypto platforms. Both have prevented a vote.

One positive development emerged this week. The Major County Sheriffs of America dropped their opposition to the DeFi provision and moved to neutral. The National Organization of Black Law Enforcement Executives also shifted to support the bill, according to CoinGape. Other law enforcement groups had previously objected.

Polymarket's contract on the CLARITY Act being signed into law by the end of 2026 now sits at 47%, down from 55% after the July 4 miss. The probability peaked near 85% in early March before declining steadily.

Senators Lummis and Tim Scott have publicly urged a vote before the August recess. The next scheduled marker is August 7, the last possible day to release the draft before the summer break.