CLARITY Act Odds Slip to 32% as Trump Meeting Fails to Produce Text

"At the end of the day, we don't have strong ethics," Gallego said. "I don't care what the president says. You're not going to have the Democratic votes."

A Democratic Senate aide told POLITICO the plan taken to the White House fell short of what Democrats would accept. Democratic lawmakers had neither reviewed nor approved the draft discussed during Thursday's talks, the aide said. The lack of agreement has left Republicans unable to present the delayed text as a bipartisan proposal.

In New York, the House Financial Services Committee's Republican members are scheduled to hold a hearing at 10 a.m. ET Friday on the legislation's potential role in digital-asset development. Terrett noted the event is informational and will not influence the Senate's review.

The House passed its own version of the CLARITY Act in 2025. Senate negotiators have been working on separate language covering crypto market rules. Any final measure would need enough support to clear the Senate before lawmakers could reconcile it with the House bill.

Sen. Cory Booker told reporters that bipartisan cooperation is the only route to completing the legislation. He said negotiators should finish those discussions before releasing a new draft, leaving the publication date and Senate vote schedule unresolved.

The August recess target looks increasingly difficult. With Democrats united against the current ethics language and Republicans unwilling to release a text that lacks Democratic backing, the CLARITY Act faces an uncertain path even with Trump's direct involvement. Industry participants had hoped the White House meeting would produce a breakthrough. Instead, the same partisan divide remains, and the odds of a 2026 enactment continue to fall.