Senate Republicans head into August recess without voting on the CLARITY Act crypto bill, as Democratic opposition blocks a pre-recess floor vote.
The US Senate will not vote on the CLARITY Act before its August recess. Senate Majority Leader John Thune confirmed that Democratic opposition had blocked the chamber from taking up the crypto market structure bill, pushing any consideration to mid-September at the earliest.
Thune made clear the delay was driven by the opposing party, not a lack of Republican momentum. "The Dems are insistent on no Clarity vote," he said in comments his office provided to Cointelegraph. "I worked with sponsors of the bill. Senator Lummis was great, and we're getting that queued up first thing when we come back."
Senate Republicans Hold the Line
Thune's position put him at odds with Senate Banking Committee Chair Tim Scott, who said that the Senate should hold its first vote on the bill before the recess "without any question." Scott said Thune still had time to schedule a procedural vote and that Republican support for the bill was growing.
Democrats have declined to approve a time agreement that would let the chamber clear its remaining pre-recess business and bring the crypto bill to the floor, according to Politico, which cited three people with knowledge of the matter. Republican leaders would need unanimous consent from all 100 senators to get through outstanding items without extending the session well into the following week.
The CLARITY Act would set a federal framework for digital asset markets and spell out how regulatory authority is divided between the US Securities and Exchange Commission and the Commodity Futures Trading Commission. Without at least 60 votes, Republicans cannot overcome a filibuster and advance the bill to a final vote.
Related Article: JPMorgan Warns CLARITY Act Delay Puts Crypto Market at Risk
What a September Return Could Mean
Thune may still file a cloture motion before the Senate departs. That procedural step would allow the bill to come up for a vote once lawmakers return in mid-September, though it would not itself constitute a vote on the legislation, according to two people cited by Politico. Cointelegraph asked Thune's office whether it planned to file cloture before the recess and had not received a response by time of publication.
Crypto Council for Innovation CEO Ji Hun Kim said the delay was "disappointing" but that the bill's direction had not changed. "Every day without such a framework pushes American users and builders offshore and leaves consumers at risk," Kim said in comments provided to Cointelegraph.
Negotiations between Republicans and Democrats were still ongoing according to Politico. The compressed timeline heading into the fall puts pressure on both parties to reach agreement before the legislative calendar tightens further.
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