Senate Majority Leader John Thune has pushed the Digital Asset Market Clarity Act off the agenda until after the August recess, sharply reducing its chances of becoming law this year. Once seen as a groundbreaking effort to regulate the US crypto market, the bill’s momentum has stalled amid competing legislative priorities and political disagreements.

From hopeful start to a crowded calendar

The Clarity Act’s journey looked promising early on. The House passed its version with a strong bipartisan vote of 294-134 in July 2025. Senate committees also approved related measures in early 2026. But the Senate’s packed schedule has pushed the bill into a tight window where serious debate now seems unlikely before fall, with critics suggesting it might not pass until 2026.

Galaxy Research recently downgraded the bill’s odds of passage from 50% to just 30%, citing the shrinking legislative timeline and a growing partisan tug-of-war as major hindrances. This stalled progress comes despite an updated draft aiming to smooth over disagreements. The revision includes an ethics provision with a 2029 sunset clause to bar public officials from engaging in crypto-related activities while in office.

Stark divisions and industry backing

Ethics, illicit finance safeguards, and consumer protections remain sticking points. Key Democratic senators argue the bill doesn’t go far enough to curb conflicts of interest or protect the public. Partisan tensions, fueled partly by debates over former President Trump’s crypto holdings, deepen the divide. Democrats fear the bill could enable crypto projects with political ties, while Republicans warn proposed ethics measures might kill the legislation altogether.

Meanwhile, major financial players like BlackRock, Fidelity, and Goldman Sachs have voiced strong support, underscoring the industry's eagerness for clarity. Their backing contrasts with the Senate’s hesitation, leaving the market with uncertainty over when clear federal rules will materialize. The SEC itself is reportedly ready to step in if Congress further delays passage of the Clarity Act.

This article provides informational content and should not be considered financial advice.