Senate Pushes Clarity Act Vote to September as Crypto, Banking and Tribal Interests Wait

The US Senate will not hold a vote on the Digital Asset Market Clarity Act before leaving for its August recess, Majority Leader John Thune confirmed, with the measure now queued to return to the floor when lawmakers reconvene in mid-September. The Clarity Act is a broad crypto market structure bill that would determine whether digital assets fall under Commodity Futures Trading Commission or Securities and Exchange Commission jurisdiction, but it has also become a battleground for prediction markets, stablecoin policy and congressional ethics rules.

A delayed timetable and a narrower window

The Senate is scheduled to leave Washington after Friday votes on a government funding resolution, a Russia sanctions bill and a slate of nominations, with no time agreement secured for the Clarity Act. Thune said Democrats were insistent on blocking the vote, and that he had worked with the bill's sponsors to get it "queued up first thing when we come back." The chamber returns on Sept. 14, 2026, leaving roughly three weeks before lawmakers again depart for midterm campaigning.

The delay has already moved betting markets: on Kalshi, the probability of the bill securing the 60 votes needed to advance fell from 25% to 16% following the announcement. Stifel's chief Washington policy strategist, Brian Gardner, had previously argued that a vote before the August recess was essential if the bill was to pass this year. A senior source familiar with the situation told CoinDesk that Senate Democrats did not want to take the vote before the election and would have delayed the rest of the chamber's agenda over the issue.

Prediction markets and Tribal gaming stakes

Beyond crypto, the legislation is being watched closely by gaming stakeholders. Tribal representatives and groups such as the Indian Gaming Association and American Gaming Association have pressed lawmakers to use the bill to restrict prediction market platforms like Kalshi and Polymarket from offering sports-related event contracts outside existing state and Tribal gaming rules. In a January joint letter, IGA Chairman David Bean and AGA President and CEO Bill Miller argued the contracts "mislead consumers into believing that a sports bet is an investment" and open the door to money laundering, match fixing and insider trading. Bean previously voiced "significant concerns" about prediction markets before a House Agricultural Subcommittee.

Stablecoin yield and the ethics carve-out

Banking industry opposition has centered on the bill's treatment of stablecoin yield. Banks have argued the language barring yield on idle stablecoin deposits is insufficient to stop an outflow of core deposits, a concern echoed by Republican Senators Josh Hawley and Jerry Moran, who both said they now oppose the bill. Meanwhile, Democrats have objected to an ethics provision that includes a carve-out for President Donald Trump, whose crypto-related holdings earned him more than $1 billion in 2025. Senators Thom Tillis and Ruben Gallego sent a counter-proposal to the White House in late July, but no public response has been issued.

Industry reaction and next steps

Crypto trade groups struck a cautiously optimistic tone despite the setback. Digital Chamber CEO Cody Carbone said the fight was far from over and his group would continue working to find common ground in September. Crypto Council for Innovation CEO Ji Hun Kim called the delay disappointing, but noted that every day without a framework pushes American users and builders offshore. Whether Thune files for cloture before the recess or after the chamber reconvenes will determine if the first procedural vote lands on Sept. 15 or Sept. 16, though it remains unclear whether the bill can even reach the 60-vote threshold, much less clear the House and reach the president's desk.