On August 8, U.S. Senator Jim Risch (R-ID) announced that the Senate would begin the process of considering the CLARITY Act on September 15, setting the next concrete deadline after lawmakers missed the August window.
Senate Majority Leader John Thune (R-SD) filed a motion for cloture on the motion to proceed to the CLARITY Act hours earlier, scheduling a vote for 2:15 p.m. Eastern Time (EDT). The question before senators is whether to proceed to consider the bill, not whether to pass it.
In his August 8 statement, Risch linked the September efforts to consumer protection and U.S. economic competitiveness, arguing that further delays could expose Americans to fraud and shift investment and financial activity overseas. The legislator stated:
"On September 15, the U.S. Senate will begin the process of passing the CLARITY Act. The stakes could not be higher."
"If this critically important bill is not passed, Idahoans will be vulnerable to fraud and scams and will cede jobs, investment, economic competitiveness, and financial leadership to foreign competitors," Risch added. "We must move this important bill forward and make it into law."
Overcoming the procedural hurdle requires 60 votes, meaning at least seven Democrats must join the 53-seat Republican majority. Negotiations are ongoing regarding ethics requirements, illicit finance provisions, and alignment with language from the Senate Agriculture Committee. The new schedule, calling for bill consideration on September 15, keeps it on the agenda while extending the uncertainty about when Congress might create a permanent federal regulatory framework for digital asset markets.
How Does 'Dead' Legislation Shift Focus to the SEC?
This development aligns with a scenario that Bitwise Chief Investment Officer Matt Hougan outlined in a memo ahead of the Senate's August recess, predicting the bill could remain viable even after its immediate passage window slipped away.
The September vote matches Hougan's description exactly, where the bill "survives" politically without reaching a final resolution, allowing regulators and market participants to continue operating while Congress negotiates.
Hougan wrote:
"The bill will enter a 'walking dead' state; nothing will be able to actually kill it, but it will lurch forward."
This protracted legislative uncertainty elevates the short-term significance of U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins's rulemaking agenda. Atkins has signaled that regulators could develop rules touching on many of the same issues addressed by the CLARITY Act if Congress does not finish the bill, creating a parallel regulatory track while senators prepare for another vote.
What Crypto Rules Can the SEC Advance Now?
In February, Atkins outlined an interim approach, telling the Senate Banking Committee that the SEC and the Commodity Futures Trading Commission (CFTC) intend to provide a "regulatory bridge" while Congress works on market structure legislation. Their joint "Project Crypto" initiative includes work on token classification and potential exemptions that would permit certain on-chain transactions under clearer federal requirements.
In March, both agencies took a first step, issuing joint guidance indicating that most crypto assets themselves are not securities; Atkins called this a "transitional bridge" for entrepreneurs and investors while Congress advances market structure legislation. The SEC's July regulatory agenda moves this "regulatory bridge" into specific policy areas, including crypto fundraising, custody, and tokenized securities. The Commission is developing rules governing the issuance, custody, and trading of crypto assets on blockchain under federal securities law.
Where Do the SEC's Powers End?
The agency's actions could clarify how securities laws apply to crypto assets, establish exemptions, settle custody questions, and create rules for securities-related activity on blockchain, without waiting for congressional action. Atkins has also characterized congressional legislation as a more durable way to provide forward-looking crypto regulation in the United States, drawing a distinction between the agency's interim rules and a statutorily anchored market structure.
The CLARITY Act would establish a broader division of authority between the SEC and the Commodity Futures Trading Commission (CFTC), including federal oversight of digital commodities, registration, trading, customer assets, and market infrastructure. Setting those jurisdictional boundaries requires congressional action, not SEC rulemaking operating solely within the commission's existing authority.
Bitwise's Chief Investment Officer wrote:
"Crypto will be fine. Even if CLARITY does not pass, the crypto industry will find a path forward."
Hougan argued that crypto development can continue despite legislative delays, while the question of regulatory certainty remains unresolved. U.S. Senator Cynthia Lummis (R-WY) continues to push for comprehensive federal market structure legislation that would establish clearer rules of the road for businesses, investors, and regulators.
The next test in Congress comes on September 15, when senators will decide whether to proceed on H.R. 3633, which passed the House by a vote of 294-134 and cleared the Senate Banking Committee by a vote of 15-9. The Senate's decision will determine whether the bill moves toward becoming statutory law, while the Securities and Exchange Commission (SEC) continues to develop crypto rules under its existing authority.
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