Senate postpones CLARITY Act vote to September after ethics impasse

Progress on the CLARITY Act stalled amid other Senate priorities, including a continuing resolution to fund the government, Russian sanctions legislation, a batch of nominations, and Todd Blanche’s nomination to lead the Justice Department. Thune said the Senate would vote on those measures Friday at 10 a.m., after reaching an agreement on debate time limits.

The postponement extends uncertainty for crypto exchanges, token issuers, and investors who have been waiting for clearer federal rules. Many industry participants had viewed the August vote as a key milestone after months of negotiations between lawmakers, regulators, and industry groups. Companies will likely continue operating under the existing patchwork of state-by-state rules and SEC enforcement actions for at least several more weeks. The CLARITY Act odds sank to 27% after the delay, according to prediction markets.

Crypto trade group Digital Chamber CEO Cody Carbone struck an optimistic note. “While this isn’t the result any of us hoped for when we began the week, the fight is far from over,” Carbone said. “The next few weeks, we will continue to work to find the last pieces of common ground needed to set up a successful vote when Congress returns in September.”

Lawmakers are expected back September 14, giving three weeks to resolve remaining differences. Thune said the CLARITY Act would be “queued up first thing” when the Senate returns.