Senate Democrats plan to block a procedural vote on the CLARITY Act, leaving the landmark crypto market-structure bill without the 60 votes it needs just days before Congress breaks for its 7 August recess, according to Punchbowl News.
Democrats have made their support for the legislation conditional on progress towards a bipartisan agreement on ethics rules covering federal officials and digital assets. However, senators have sent the proposed text to the White House and received no response, making it increasingly likely that the procedural vote will fail.
Sen. Ruben Gallego (D-AZ), who helped negotiate the compromise with Sen. Thom Tillis (R-NC), has expressed frustration at the lack of movement.
The dispute has overshadowed the bill for several weeks. Democrats are seeking enforceable restrictions to prevent federal officials from profiting from digital assets while in office, with the demand aimed particularly at cryptocurrency ventures associated with President Trump’s family.
They have rejected the provision contained in the current 616-page version of the CLARITY Act, arguing that it does not go far enough.
Senate Majority Leader John Thune (R-SD) continues to support holding a procedural vote before senators leave Washington, but the timetable is becoming increasingly difficult. Fox Business correspondent Eleanor Terrett reported that Thune did not file cloture on the motion to proceed on Tuesday evening, citing procedural issues linked to the continuing resolution.
Terrett also said the lack of sufficient support “likely also factored in”.
Under Senate rules, an intervening day must pass between the filing of cloture and the first vote. Every day without a filing therefore reduces the time available to move the legislation before the Friday recess.
Republicans control 53 of the Senate’s 100 seats, meaning the bill needs support from about seven Democrats to reach the 60-vote threshold. At present, it does not have any Democratic votes committed to it.
Supporters of the legislation are continuing to pressure Democrats. Sen. Cynthia Lummis (R-WY) urged them not to block the bill, describing it as a measure that would protect consumers and help keep the crypto industry in the United States.
Industry groups have also intensified their lobbying campaign. More than one million constituent contacts have been sent to Congress in support of the proposed framework.
The political impasse has begun to affect expectations in crypto markets. Polymarket odds of the CLARITY Act being signed into law in 2026 fell from 27% to 23% this week, particularly after the Senate did not include the bill on Monday’s agenda.
Bitcoin, which supporters had hoped would benefit from a regulatory breakthrough and move back above its previous highs, has instead traded around $64,000 during the week.
A procedural vote could still take place before Friday if Thune files cloture on Wednesday. If the vote fails, or if no vote is held, the legislation will be delayed until at least September.
At that point, negotiations over the ethics provisions are expected to resume, with the midterm political environment adding further pressure to the debate. Thune has continued to say he expects the Senate to hold a floor vote on the CLARITY Act this week, despite the growing uncertainty over whether Democrats will provide the support required for it to advance.
