CLARITY Act Faces Stalled Progress in Congress Amid Ethics and Scheduling Conflicts
The Digital Asset Market Clarity Act (CLARITY Act), a proposed U.S. federal legislation aimed at regulating digital assets, is facing significant hurdles in Congress. A cloture vote in the Senate, scheduled for September 15, is critical for the bill to proceed to debate. However, House Republican leaders have canceled voting days in late September, leaving insufficient time for the bill to pass both chambers before the November 3 midterm elections. Polymarket odds for the bill becoming law in 2026 have plummeted from 82% in February to approximately 16% in early September. A key point of contention is Section 13152, an ethics provision that bans the president, vice president, and members of Congress from issuing or sponsoring digital assets while in office. Democrats argue this provision is too weak, seeking extensions beyond January 20, 2029, and broader enforcement authority, while Republicans contend that strengthening it further would jeopardize White House support. The crypto industry, represented by ...