The chances of the CLARITY Act, which aims to create a regulatory framework for the cryptocurrency market in the US, being passed before the Senate goes on summer recess are decreasing.
Senate Majority Leader John Thune indicated that the bill might not be brought to a final vote before the summer recess. However, Thune said he hoped the bill would begin being debated in the Senate before the recess began.
The crypto sector had previously considered August 7th a critical threshold for the regulation to become law within 2026. It is stated that if the process is postponed until the fall, the likelihood of the bill being completed by the end of the year may decrease due to Congress’s tightening work schedule.
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White House crypto adviser Patrick Witt believes the Senate could take action on the bill in the first week of August, but said a final vote in July is unlikely.
The updated draft, released by Senator Cynthia Lummis, includes stronger provisions for protecting customer assets. However, disagreements over ethical guidelines for public officials’ crypto activities, stablecoin rewards, and other clauses remain unresolved.
Galaxy Research Head Alex Thorn, however, pointed to the tightening legislative timeline and lowered his personal estimate of the probability of the CLARITY Act becoming law in 2026 from 50 percent to 30 percent.
*This is not investment advice.
