Senate Punts CLARITY Act Vote to September Amid Deadlock

The stalemate centers on persistent disagreements over ethics and enforcement, with a group of seven Democratic senators—including Angela Alsobrooks and Ruben Gallego—rejecting the current draft. Despite both senators having previously supported the bill within the Senate Banking Committee, they now demand more stringent rules regarding conflicts of interest, consumer protections, and the digital asset holdings of elected officials. The negotiations are further complicated by concerns tied to President Donald Trump’s family business interests, with the White House still weighing a potential divestiture requirement.

While the legislation cleared a 15-9 committee vote in May, the shift to a September timeline narrows the window for passage. Lawmakers face an increasingly crowded calendar as midterm election pressures and upcoming spending battles loom. Even if the Senate manages to secure the necessary bipartisan support upon returning, any final measure must still be reconciled with the House-passed version of the bill. For now, the legislation remains in limbo, serving as a test of whether negotiators can bridge the divide between industry-backed market structure reforms and Democratic demands for tighter oversight.