The U.S. Senate left for its August recess without advancing the CLARITY Act, drawing criticism from crypto industry figures and supporters of the market-structure bill. Senate Majority Leader John Thune has now filed cloture on the motion to proceed, setting up a key procedural vote for Sept. 15 after lawmakers return to Washington.

That vote would decide only whether the Senate can formally begin considering the legislation. It would not amount to final passage, and the bill would still face debate, amendments, and another approval vote in the Senate before moving forward.

A procedural step, not the final decision

Thune filed the cloture motion shortly before the Senate began its month-long break. Under the current schedule, the motion is set to ripen on Sept. 15, one day after senators return on Sept. 14.

For the bill to clear that hurdle, at least 60 senators must vote to end debate on the motion to proceed, meaning bipartisan backing is required. Even if the Senate opens formal consideration, the CLARITY Act would still need to survive further debate and possible amendments before any final vote.

If the Senate passes a version that differs from the House measure, the legislation would have to go back to the House before it could reach the president’s desk.

Backlash from supporters and industry executives

The failure to secure a pre-recess procedural vote prompted sharp reactions from crypto advocates. Sen. Cynthia Lummis said she was frustrated by the delay but maintained that the push for the bill was not over and that she would keep working with colleagues in the Senate.

Coinbase executives also criticized the missed timing. CEO Brian Armstrong described the delay as disappointing, while arguing that adoption of digital assets would continue independent of Congress’s pace. He pointed to areas such as stablecoin use, tokenization, and broader digital asset markets as signs of ongoing momentum.

Coinbase Chief Policy Officer Faryar Shirzad said September would give lawmakers another chance to complete the effort. According to the report, the delay did not trigger an immediate drop in Coinbase shares.

Ethics rules and stablecoin rewards remain sticking points

The extra time before September may create room for negotiations, but it also pushes the issue closer to the Nov. 3 midterm elections, narrowing available floor time for a complicated bill. Two disputes remain especially prominent: ethics restrictions and the treatment of stablecoin rewards.

Democrats have been pressing for stronger ethics guardrails, citing concerns about crypto investments held by senior government officials and their families. At the same time, banking groups have warned that the bill could let crypto firms offer stablecoin rewards in ways that might pull deposits from community banks.

The current framework draws a distinction between interest paid simply for holding a stablecoin and rewards tied to activities such as trading or loyalty programs. That distinction has become a point of contention involving Coinbase. Banking associations want what they see as stablecoin-yield loopholes closed, while crypto advocates say existing language already blocks deposit-like interest from issuers and that broader restrictions would mainly shield banks from competition.

Markets expect a vote, but not necessarily a law this year

Prediction markets suggest traders broadly expect the Senate to hold a vote in September, but remain skeptical that the CLARITY Act will become law before the end of 2026. Kalshi has put the probability of a Senate vote before Oct. 1 at about 88%, broadly matching the Sept. 15 timeline now in place.

Polymarket has been much less optimistic about the bill’s full path to enactment, assigning it a 25% chance of becoming law during 2026. Longer-dated bets have shifted expectations toward 2027 instead.

The next confirmed step is the Sept. 15 cloture vote. That result will show whether the bill still has enough bipartisan momentum to move into formal Senate debate, but unresolved negotiations mean final passage remains uncertain.

Source: crypto.news