US Senate Republican Majority Leader John Thune has still not initiated a cloture vote on the CLARITY Act — the bill risks being paused due to the August recess.
The House of Representatives will begin a month-long recess on August 7, after which it will shift focus to preparing for the November elections. The crypto bill has fewer and fewer chances for swift advancement.
Nevertheless, as reported by Laura Weiss from Punchbowl News, Thune still intends to hold a procedural vote on the CLARITY Act.
"We are building the process, but there are still some issues we want to resolve," the senator added.
At the same time, a staffer for the Democratic minority in the Senate told The Block that work on the document has "reached an impasse." Legislators still face three key issues: ethics, illicit financing, and the text prepared by the Senate Agriculture Committee.
"If we can settle these points, we definitely want to move forward," the source added.
The most contentious issue is ethics. Democrats demand that the growing interests of US President Donald Trump in the digital asset sector be taken into account.
Media: Trump Agrees to Add Ethical Norms to CLARITY Act
The Senate staffer noted that the text must include a provision on the authority of state prosecutors and remove the clause on the statute of limitations for crimes. Although the document's advancement does not require the president's approval, Trump could veto it, added the publication's source.
Illicit financing is also a relevant problem. The prevailing view within the administration is that the law does not sufficiently protect law enforcement and consumers.
A separate point of contention is the version of the text from the Senate Agriculture Committee. The committee advanced its version in January, but Democrats did not support it.
"The only way to hold a final vote at this stage is to postpone the Senate recess for a week or to suspend the rules, which requires unanimous consent. Both options are unlikely, as senators want to return home to participate in the election campaign," analysts at TD Cowen concluded.
As a reminder, Bitwise Chief Investment Officer Matt Hougan stated that the crypto industry will continue to develop even if the CLARITY Act bill fails in the US Senate.
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