White House Crypto Advisor Patrick Witt criticized Democrats for delaying progress on the CLARITY Act. In his statement, he accused them of orchestrating a complete blockade of a minor procedural vote on the bill before Congress's August recess.
He stated: "Chuck Schumer and 'crypto-supporting Democrats did everything possible to block even a simple procedural vote on the bill before the Congressional recess, demanding yet another delay."
His remarks followed a lengthy overnight voting session where the bill was not brought up for a preliminary vote before summer, diminishing its chances of passage in September. Nevertheless, this Saturday, Republican John Thune filed a motion to schedule a crucial procedural vote on the Clarity Act immediately after the August recess. Given the bill's precarious status, this legislative action was necessary to preserve its chances of becoming law.
In his statement, Thune wrote: "We, the undersigned Senators... hereby move to conclude consideration of the motion to proceed to Calendar No. 423 [House Resolution] 3633, an act to provide for a system for the regulation of the offering and sale of digital goods by the Securities and Exchange Commission and the Commodity Futures Trading Commission."
Witt says if the Senate fails to vote on the bill in September, it likely never will
In a post on X, Witt acknowledged Congress's years-long effort to establish a regulatory framework for cryptocurrency, emphasizing that the Senate has been in intensive negotiations on the Clarity Act since last summer.
However, he noted that if senators fail to vote on the bill by September 15th, it will likely be stalled indefinitely. Just a month ago, Galaxy Research lowered the odds of the bill passing in 2026 from 50% to 30%, given how close the August recess was and how little progress had been made.
Like Witt, Thune previously accused Democrats of delaying the bill. Although even then he insisted that passing the CLARITY Act would be a priority after the Congressional recess. Now that his motion has been filed, the bill is before the Senate under a cloture process, which includes several procedural steps and waiting periods before a final vote.
The outcome of the September vote could decide the bill's fate
The September period is becoming increasingly crucial for the crypto industry, as another delay could further exacerbate political uncertainty surrounding the CLARITY Act.
The legislation aims to clarify the jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission, eliminating a long-standing source of uncertainty for companies dealing with digital assets in the US.
Failure to advance the bill could also mean crypto companies waiting longer for a comprehensive market framework, especially as lawmakers shift their focus to the November midterm elections. Thus, the limited legislative calendar in September puts additional pressure on both parties to resolve remaining disagreements and secure sufficient support for a floor vote.
For supporters of the bill, the next few weeks will be decisive. Republicans will need to maintain unity while persuading enough Democrats to support the bill, while Democrats will be pressured to secure changes to provisions they deem problematic before allowing the bill to advance further.
The bill will have to compete for Senate floor time with other legislation in September, the chamber's last working days before the midterm elections. Nonetheless, as Thune has initiated the process, the Senate could vote almost immediately upon returning, potentially clearing the first major hurdle on the second day back in September. Additionally, senators will only need a few days within the three-week September session to complete the voting process. The Senate officially reconvenes on September 14th.
Passing the CLARITY Act requires 60 votes
Lawmakers still disagree on a number of contentious issues, particularly the intricacies of combating financial crimes, disputes over stablecoin rewards, and government ethics guidelines. In July, Senators Gallego and Tillis proposed a compromise on ethics issues that would grant state attorneys general the authority to enforce a ban on creating or sponsoring digital assets by public officials and their spouses. The compromise also includes a provision requiring the President to divest holdings in crypto-related companies, but he has not yet approved this plan.
Passing the bill will require approximately 60 votes. With 53 Republicans, they will need at least 7 votes from Democrats or independents, assuming the entire Republican caucus supports it. Nevertheless, the CEO of the Crypto Council for Innovation, Ji Hun Kim, posted on X that they plan to lobby both Republicans and Democrats during the August recess to secure the necessary votes by September.
