Crypto Lobby Says Washington Is Bluffing on CLARITY Act

Republican senators have indicated that the Digital Asset Market Clarity Act (CLARITY Act) is unlikely to pass when the Senate reconvenes next week, according to reporting from Semafor.

Legislative Context

The CLARITY Act would determine which U.S. regulator has authority over crypto trading. The bill has never received a full Senate vote and is stalled over language concerning ethics provisions related to former President Donald Trump and his family.

Political Positions

Sen. Mike Rounds (R‑South Dakota) described the outlook as poor. Senate Majority Whip Sen. Thom Tillis (R‑North Carolina) warned that without White House engagement on the ethics language, the bill will fail. The upcoming vote on September 15 is a procedural vote that requires 60 supporters to open debate but cannot pass the bill on its own.

White House Stance

The White House has indicated continued support for the legislation and has reportedly conceded on broader ethics terms.

Crypto Industry Reaction

Alexander Grieve, vice‑president of government affairs at Paradigm, characterized the reported pessimism as a bargaining tactic, suggesting lawmakers may leak negative outlooks to extract concessions. He noted that lobbying and advertising spend continue despite the bill’s uncertain future.

Market Sentiment

Polymarket odds for the CLARITY Act’s enactment in 2026 have fallen to around 16%, down from over 75% earlier in the year.

Outlook

The September 15 vote will determine whether the ethics provision remains a negotiable issue or a definitive barrier to the bill’s progress.