Clarity Act Stalls in Senate as Ethics, Law Enforcement Concerns Block Vote Before August Recess

According to a Senate Democratic staffer, progress on the Clarity Act cryptocurrency legislation is at a "standstill" as of Wednesday afternoon, with Majority Leader John Thune yet to file a cloture procedural vote before the Senate's monthlong August recess begins Friday. The bill requires 60 votes to advance, but TD Cowen estimates the Senate could be 10 votes short.

Three key issues are blocking movement: ethics concerns around President Trump's crypto ventures, illicit finance protections cited by law enforcement groups, and disputes over incorporating Senate Agriculture Committee language. A Democratic staffer said Democrats would need state attorneys general enforcement powers, a divestment provision, and no sunset clause on ethics restrictions to proceed, though they signaled September remains a window to pass the bill.