The CLARITY Act, a landmark crypto market structure bill, missed a critical procedural step on Wednesday as Senate Majority Leader John Thune filed cloture on other legislation but not on the crypto measure. The omission reduces the already narrow window for a vote before the August recess, which Thune himself described as ‘complete chaos’ amid a packed legislative sprint.
Thune filed cloture on the Protect College Sports Act and on a continuing resolution and a nomination, but the CLARITY Act was left without the procedural countdown needed for an initial cloture vote. Cloture on a motion to proceed would require 60 senators, forcing Republicans to win at least seven Democratic votes. Crypto journalist Eleanor Terrett noted that the decision to prioritize college sports signaled no bipartisan agreement had been reached on the crypto bill. Thune later said negotiations were still ongoing, calling the delay ‘a matter of sequencing,’ and confirmed he still expected a vote on market structure legislation, though the chamber’s schedule remains tight.
Sticking points in negotiations include ethics restrictions on elected officials’ crypto holdings, pushed by Senator Elizabeth Warren, as well as stablecoin rewards and protections for noncustodial blockchain developers. Bitwise CIO Matt Hougan warned that missing the pre-recess window could leave the bill in a ‘walking dead’ phase, facing months-long delays and greater procedural hurdles later in 2026. SEC Commissioner Hester Peirce expressed optimism that the bill would eventually pass and that the agency could continue working on digital asset rules regardless.
Prediction market Kalshi placed the odds of enactment before July 1, 2027, at 41%, with 58% before October 1, 2027, and 65% before January 1, 2028. The CLARITY Act would define the roles of the SEC and CFTC in overseeing U.S. digital asset markets, and its delay leaves the regulatory landscape uncertain. The broader legislative chaos, as described by Thune, highlights the intense pressure on the Senate to clear must-pass items before the traditional August break, threatening to push unresolved crypto legislation deep into the election year.
