Senate recess begins Thursday; Clarity Act vote not scheduled. Betting odds of passage fell to 27% as ethics language and banking lobby concerns stall progress.
The Senate leaves Washington this week for a five-week recess. The Clarity Act has no vote scheduled before then.
The crypto bill passed the House last year with bipartisan support but has been stuck in the Senate. A new draft circulated in July added ethics language that bans government officials and their families from promoting or issuing crypto.
Senator Elizabeth Warren told Punchbowl News on Sunday that "more people in the Senate are beginning to question crypto's electoral invincibility." Warren has said the bill would let criminals and cartels move money and enrich President Donald Trump. The proposed law bans government promotion of crypto.
Pro-crypto Republican Senator Cynthia Lummis accused Democrats of deliberately holding up the bill. "Democrats are blocking it," she said in a statement.
The banking lobby has raised concerns about stablecoin yields. Crypto exchanges offering attractive rewards could drain deposits from traditional banks, lobbyists argue. Another sticking point: some lawmakers cite conflicts of interest tied to Trump's business interests, including his family's involvement in meme coins and the World Liberty Financial DeFi protocol.
Major Wall Street firms including Fidelity and Goldman Sachs have backed the bill. Law enforcement organizations have also endorsed it. Goldman Sachs carries an AlphaScala Score of 58 (Moderate). GS stock page
Kristin Smith, president of the Solana Institution and former Blockchain Association CEO, said on X Monday that bipartisan work continues. Republican Thom Tillis and Democrat Ruben Gallego are drafting new ethics language, she said.
Coinbase Chief Policy Officer Faryar Shirzad struck an upbeat tone last week. Democrats and Republicans had worked hard on the legislation, he said.
Betting markets now put the odds of passage at 27%, down from earlier levels. CLARITY Act odds sink to 27% after Senate delays crypto bill Florida Senator Haridopolos warned that the delay risks the U.S. crypto lead. CLARITY Act delay risks US crypto lead, Haridopolos warns
The Senate recess begins Thursday. No vote on the Clarity Act is scheduled before then.
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