Huo Xing Finance reports, according to Cryptopolitan, the U.S. Senate will enter recess on August 7, leaving an extremely narrow window for the CLARITY Bill to pass before then. If voting is not completed this week, the next viable window will be pushed to September, and if missed again, passage could be delayed until after the midterm elections—potentially not until 2027. The primary point of contention in the bill currently lies in the Democratic Party’s insistence on including ethical provisions targeting senior government officials, though these provisions have not yet been incorporated into the consolidated draft. During this regulatory vacuum, large institutions such as Coinbase and Circle, with their capital strength, are better positioned to navigate uncertainty—ARK Invest increased its stakes in both companies this week, and Circle also received federal national trust bank charter approval in July. In contrast, smaller and mid-sized crypto firms and DeFi projects continue to face mounting pressure. Market data from Polymarket shows the probability of the CLARITY Bill passing within 2026 has dropped to 23%, a significant decline from Galaxy Research’s mid-May forecast of 67%–75%.
CLARITY Bill Delayed Until 2027; Major Crypto Firms May Gain Advantage
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Summary
The U.S. Senate’s recess on August 7, 2026, may delay the CLARITY bill until 2027. A vote in late August is unlikely, with the next opportunity in September. Disputes over ethics rules for officials in the crypto market remain unresolved. Large firms such as Coinbase and Circle are better positioned to navigate the regulatory gap, while smaller players struggle. Polymarket data shows the odds of the bill passing in 2026 have dropped to 23%, down from 67%–75% in May. Traders are advised to monitor altcoins as regulatory timelines shift.
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