Clarity Act Update: White House Silence Prolongs Senate Vote Uncertainty

Key Insights

• White House silence keeps the Clarity Act update uncertain before the Senate cloture vote.
• Ethics negotiations remain the biggest hurdle to advancing the crypto bill this week.
• Midterm politics and bipartisan support will shape the future of crypto regulations.

The CLARITY Act update remained uncertain as Senate leaders approached their final legislative days before the August recess.

Lawmakers continued negotiating the bipartisan support required to move the legislation through the Senate. However, Senate records did not show that Majority Leader John Thune had filed cloture on the bill as of Aug. 5.

The official Senate cloture list instead showed filings on nominations and other legislation. Without a cloture filing, no procedural vote on the CLARITY Act had been scheduled.

Ethics provisions remained the main obstacle. Several Democrats said they would not support the current legislation without stronger restrictions on elected officials’ crypto interests.

The White House had also reportedly not responded to a revised bipartisan ethics proposal. That delay reduced the time available for lawmakers to reach an agreement before leaving Washington.

The Senate is working under a limited timeline on the CLARITY Act update, as lawmakers consider several major legislative priorities before leaving for the August recess.

Under Senate procedures, Majority Leader John Thune would need to file cloture on Tuesday to schedule a Thursday procedural vote. That vote would determine whether the Senate can formally begin debate and consider amendments to the legislation.

Speaking to reporters, Thune said he expects the Senate to vote on market structure legislation. However, he stopped short of confirming that the required support is already in place.

His remarks came as negotiations continued over three unresolved issues. Those discussions include ethics provisions, the Blockchain Regulatory Certainty Act, and language contained in the Senate Agriculture Committee’s section of the bill.

Attention has also shifted to the White House after it reportedly did not respond to a revised bipartisan ethics proposal submitted last week by Senators Thom Tillis and Ruben Gallego.

The lack of a response has increased uncertainty around the legislation’s path through the Senate.

As per the report, the CLARITY Act update is not expected to get the required Democratic support without a bipartisan ethics agreement. Tillis has declared that he will not support the legislation unless stronger ethics provisions are included.

In addition, some Republicans have raised concerns about the bill’s language on stablecoin yields.

Several industry participants who previously had high assurance in the legislation are now privately questioning whether the measure can pass its initial procedural vote. A failed cloture vote would leave the next steps unclear.

Others pointed to previous legislative experience. Kristin Smith, president of the Solana Policy Institute, said major bills often pause before returning for additional negotiations.

Smith also cited the GENIUS Act, which initially failed cloture before later passing the Senate by a 68-30 vote and becoming law.

Political considerations have become another factor as negotiations continue over crypto regulations.

Fairshake and its affiliated organizations reported nearly $129 million in combined cash on hand as of June 30. Some industry observers believe an upcoming Senate vote could confirm where lawmakers stand before the midterm elections.

Several Washington lobbyists also believe the crypto-focused political network is waiting to see how senators vote before making larger spending decisions.

Senator Cynthia Lummis said lawmakers now face a clear decision after months of negotiations. She said senators must either support legislation that includes additional law enforcement, decentralized finance, and ethics protections or explain why agreement remains out of reach.

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