Clarity Act Stalls: 80% of Crypto Developers Now Offshore

The Digital Asset Market Clarity Act has stalled in the Senate. No motion to proceed with the bill had been filed as of July 31, and the summer recess is days away. Without that procedural step, the legislation cannot reach the floor.

The main obstacle is an unresolved ethics provision. Senators Ruben Gallego and Thom Tillis sent a revised proposal to the White House. As of Friday, the administration had not responded, people familiar with the matter said. Secondary issues around stablecoin reserves and law enforcement could be resolved quickly if the ethics question gets sorted, industry sources said.

A cloture vote would force every senator to take a position on moving the bill forward. That kind of recorded vote has political weight. Crypto political action committees have been tracking the process, and a clear vote tally would shape their 2026 midterm spending, a person tracking the industry's political strategy said.