The CLARITY Act, the bipartisan US crypto market structure bill, faces another delay as the Senate’s crowded schedule and upcoming midterm elections make passage in 2026 increasingly difficult.
Grayscale Head of Research Zach Pandl said the chances of Senate approval this year now appear low. However, he said failure to pass the bill would not immediately affect Bitcoin, stablecoins or major blockchain networks.
Senate Vote Now Set For September
The bill still has a path forward after Senate Majority Leader John Thune filed cloture on the motion to proceed. A cloture vote is scheduled for September 15 at 2:15 p.m. ET, when the Senate returns from recess.
The vote would only limit debate on the motion to proceed. It would not approve the CLARITY Act itself. Republicans hold 53 Senate seats, meaning at least seven Democrats or independents would need to support the motion.
Ethics Proposal Remains A Key Issue
Senators Thom Tillis and Ruben Gallego have been working on a bipartisan ethics proposal tied to the legislation. The proposal would allow state attorneys general to enforce restrictions on officials issuing digital assets and require Donald Trump to divest from crypto businesses. Trump has not approved the agreement.
Meanwhile, Senator Elizabeth Warren has called for the CLARITY Act to be rejected, arguing that it does not provide enough protection for investors, the financial system or national security.
What Happens If CLARITY Fails?
Grayscale said the absence of the bill would not immediately affect Bitcoin’s role as a store of value, major blockchain networks or the growth of stablecoin payments. The crypto industry has continued to develop for nearly 17 years without comprehensive US market structure legislation.
However, the lack of a clear regulatory framework could slow investment and push some crypto businesses overseas. The bill would establish clearer rules for digital asset intermediaries, tokenized securities, capital formation, investors, consumers and developers.
Even without the CLARITY Act, Grayscale expects the SEC and other US regulators to continue developing rules covering institutional custody, banking access, staking, crypto exchange-traded products and tokenized securities.
The concern is that agency-level rules may not provide the same broad framework as legislation. This could encourage some companies to operate in countries with clearer crypto regulations.
Analyst Sees Potential Crypto Rally
Analyst Michaël van de Poppe expects the September vote to bring renewed attention to DeFi, Ethereum and US-based crypto protocols. He said the event could create a “buy the rumor, sell the news” setup as traders position ahead of the vote.
For now, the CLARITY Act remains alive, but its path through the Senate is becoming increasingly difficult. September 15 could become the next major test for US crypto regulation.
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