The U.S. Senate has postponed a floor vote on the Clarity Act — the long‑awaited crypto market‑structure bill — until September, pushing the measure into a narrow window before midterm campaigning dominates lawmakers’ schedules. Senate Majority Leader John Thune (R‑SD) confirmed the delay late Thursday, saying Democrats are “insistent on no Clarity vote” ahead of the break and that sponsors, including Sen. Cynthia Lummis (R‑WY), will be ready when the Senate returns. Why the delay matters - The Senate leaves for recess Friday and returns in mid‑September for only a few weeks, making that period the last realistic chance this year to pass the bill before attention turns fully to November’s elections. - A source familiar with the matter told The Block that Senate Democrats are reluctant to vote before the midterms as the crypto industry’s political footprint grows; the delay also buys time to assemble the 60 votes needed to overcome a filibuster on the floor. Where the vote stands politically - The Clarity Act passed the Senate Banking Committee in May by 15‑9, but only two Democrats — Rep. Ruben Gallego (D‑AZ) and Sen. Angela Alsobrooks (D‑MD) — crossed party lines then. That means roughly six Democratic votes are now required on the floor to reach 60. - Republican support has also been inconsistent, and analysts have grown less confident about passage. Galaxy Research cut its odds of the bill passing this year to about a coin toss in June. The unresolved issues Lawmakers and industry observers say the same substantive fights that have dogged the bill all year remain unresolved: - Stablecoin mechanics and rewards - Whether the legislation gives law enforcement sufficient tools to counter illicit finance - Ethics provisions that would affect President Donald Trump’s crypto holdings The presidential ethics wrinkle A particularly sensitive component is an addendum reportedly negotiated by Senators Thom Tillis (R‑NC) and Ruben Gallego. The text — still unreleased and being worked out with the White House — would require the president to divest from crypto‑related businesses. Bloomberg has reported that, under the addendum’s forced‑divestiture structure, the president could defer federal capital‑gains tax on those assets for years; if replacement investments were held until death, the gains could potentially escape tax entirely. Trump reported $1.4 billion in crypto and meme‑coin earnings for 2025 and holds a 38% stake in World Liberty Financial through an affiliated company. Absent a deferral mechanism, he would face the standard 20% capital‑gains rate. Bloomberg also noted that Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent used similar provisions in their own divestments. The addendum would reportedly allow state attorneys general to sue to enforce ethics measures if the Justice Department declines to act. Whether the president will accept this package remains unresolved. Industry reaction and regulatory fallback Crypto industry groups voiced disappointment at the delay but stressed the stakes of inaction. Crypto Council for Innovation CEO Ji Hun Kim said the postponement was “disappointing” and warned that every day without a clear U.S. framework “pushes American users and builders offshore and leaves consumers at risk.” The industry has also been wary of an alternative: SEC Chair Paul Atkins warned last month that the agency stands ready to draft crypto rules itself if Congress stalls — an outcome the industry resists because agency rulemaking can be reversed by a future administration. Next steps If the Clarity Act clears the Senate in September, it would return to the House for another vote before heading to President Trump. Given the compressed calendar and lingering controversies, whether the bill can secure the necessary votes in the short fall window remains an open question. Read more AI-generated news on: undefined/news