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If Democrats regain a majority in the House of Representatives in the November midterm elections, their priority is expected to be investigating President Donald Trump's finances and cryptocurrency dealings, rather than advancing the CLARITY Act. Key Democrat Jamie Raskin has labeled corruption around presidential power a "civil emergency" and plans to compel testimony on issues including Trump's crypto earnings, his son Barron's role at World Liberty Financial, and potential emoluments clause violations. Trump reported over $1 billion in crypto income for 2025, largely from 'Celebration Coins' ($TRUMP memecoin) royalties and family-linked crypto ventures. Meanwhile, the CLARITY Act, crucial for crypto market structure, is stalled in the Senate, needing 60 votes to overcome a filibuster. Democrats refuse support unless it addresses Trump's crypto conflicts of interest, proposing ethics provisions. Senators Warren and Blumenthal have also asked the SEC to investigate the $TRUMP memecoin as a potential fraud. Corporate spending on elections by crypto and tech firms exceeds $294 million. Prediction markets now give the CLARITY Act only a 38% chance of passing this year, down from over 80%.

White House crypto advisor Patrick Witt criticized Senate Democrats for delaying the CLARITY Act. He accused them, including Chuck Schumer and crypto-supporting Democrats, of blocking a procedural vote before Congress's August recess. The bill's September passage chances diminished after a failed preliminary vote. In response, Republican Senator John Thune filed a motion for a key procedural vote immediately after the recess to keep the bill alive. Witt warned that if the Senate fails to vote by September 15th, the bill is likely dead. The September session is critical for the crypto industry, as further delay would increase uncertainty. The CLARITY Act aims to clarify regulatory jurisdiction between the SEC and CFTC for digital assets. Thune's motion starts a cloture process, which could allow a Senate vote soon after returning on September 14th, needing only a few days within the three-week session. The bill requires about 60 votes to pass. With 53 Republicans, at least 7 Democratic or independent votes are needed, assuming full GOP support. Legislators still disagree on issues like financial crime, stablecoin rewards, and ethics rules. Lobbying efforts are underway during the August recess to secure votes.

The White House accuses Democrats of obstructing the CLARITY Act, a key cryptocurrency bill. Patrick Witt, Executive Director of the President’s Council on Digital Assets, stated that Democrats did everything to prevent the bill from being passed before the Congressional recess, which began on August 7th. He warned that if the bill is not addressed by September 15th, it may never be approved. The CLARITY Act aims to provide greater legitimacy and opportunities for crypto projects in the U.S. However, Democrats express concerns over unresolved issues, such as the yield on stablecoins potentially drawing customers away from traditional banks and exemptions for decentralized projects from anti-money laundering and user verification rules. They also raise questions about a conflict of interest regarding former President Donald Trump, who reportedly earned approximately $1.4 billion from crypto ventures in 2025 and is promoting the bill. Republicans pushed for a vote before the recess, while Democrats insisted on resolving outstanding issues first to avoid future corrections. An article in The Wall Street Journal criticized the bill as containing many "delayed-action mines," highlighting the partisan divide. Witt dismissed the Journal's coverage as unworthy of attention, claiming it echoes Wall Street banks' talking points.

The White House reaffirms its commitment to passing the CLARITY Act in September, despite a Senate delay pushing the vote until after the August recess. The administration's top crypto policy official stated negotiations with Democrats will continue up to the September vote. A key procedural cloture vote requiring 60 votes is expected in mid-September to advance the bill, which aims to create a federal regulatory framework for digital assets, classifying tokens and overseeing trading platforms. However, unresolved disagreements remain, including Democratic demands for stricter ethics rules related to Trump-linked crypto interests and banking industry concerns over stablecoin reward provisions.

The White House remains committed to passing the CLARITY Act in September, despite the Senate's postponement of consideration until after the August recess, according to a senior advisor. Patrick Witt, Executive Director of the President's Council of Advisors on Digital Assets, stated the administration will continue negotiations with Democrats "through the September vote," adding that "we also cannot wait forever." The Senate is expected to hold a cloture vote in mid-September, a procedural step requiring 60 votes to bring CLARITY to a final vote. The CLARITY Act aims to establish federal rules for the digital asset market, including criteria for classifying crypto tokens as securities or commodities and regulations for trading platforms. Several contentious issues remain unresolved ahead of the vote. Senate lawmakers have not yet announced decisions on Democratic demands to tighten ethics rules for crypto projects connected to former President Trump. Additionally, banking groups are seeking changes to rules that could allow companies to pay rewards to stablecoin holders.