The Digital Asset Market Clarity (CLARITY) Act — a market structure bill that would establish the first comprehensive US regulatory framework for digital assets by clarifying the division of oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission — is now headed for a cloture vote in September, leaving many crypto industry leaders and advocates frustrated after the US Senate failed to take action before departing for a month-long recess.

On Saturday, the Senate Daily Press reported that Majority Leader John Thune filed cloture on a motion to bring the CLARITY Act to the chamber floor for consideration. The move ended speculation that lawmakers would address the bill more than a year after it was passed by the House of Representatives. A cloture vote requires support from at least 60 senators to advance.

The vote is now expected when the Senate reconvenes in mid-September — a timing that places the debate just 50 days before the 2026 midterm elections, a factor many observers believe could diminish the legislation's chances of passage.

Senator Cynthia Lummis expressed her frustration on Friday after the chamber declined to schedule a vote on CLARITY, stating: "[Y]ou can imagine how frustrated I am." She added: "I will continue working with my colleagues to get this done — this fight is far from over."

Source: Cynthia Lummis

Coinbase CEO Brian Armstrong and the exchange's chief policy officer, Faryar Shirzad, both described the Senate's inaction as "disappointing" but emphasized that September would be the moment to "finish the job." Meanwhile, Bitmine chair Tom Lee noted in the company's weekly report that "financial markets seem more focused on the recent softer inflation and jobs data" than on any potential consequences of CLARITY not advancing.

Reports indicated some progress in bipartisan negotiations on the crypto market structure bill. However, senators did not announce resolutions to concerns raised by many Democrats demanding stricter ethics provisions addressing US President Donald Trump's crypto investments. Trump continues to face congressional scrutiny over his family's crypto venture, World Liberty Financial, as well as personal projects including a memecoin launched days before he assumed office.

On the banking side, some advocates have urged lawmakers to reconsider provisions in CLARITY that would still permit companies to pay interest to stablecoin holders under certain conditions. In a Thursday Wall Street Journal op-ed published before Thune's cloture motion, the editorial board argued that small banks would be disadvantaged "because they rely on interest payments to attract deposits." The editorial further stated: "The Clarity Act can serve a useful purpose with some language changes. The crypto industry and its friends in Washington portray themselves as defenders of free markets. What they really want is to be quasi-banks without abiding by the same regulations."

Prediction Markets Still Bullish on CLARITY

Despite the setback in Congress, prediction market platforms continue to reflect optimism about the bill's prospects. On Kalshi, an event contract with $1.23 million wagered assigned an 88% probability that the Senate would vote on the legislation before October 1. A comparable contract on Polymarket placed a 26% chance on the bill being signed into law this year, with total wagers exceeding $5.79 million.

If the Senate passes CLARITY, the legislation would need to return to the House for another vote before potentially reaching President Trump's desk. For an industry that has long cited the absence of clear federal rules as a driving factor behind relocating operations and listings overseas, the September vote represents one of the most consequential legislative moments for digital asset regulation in the United States.