Senate Republicans have postponed the next procedural step for the CLARITY Act, a proposal aimed at establishing a regulatory framework for the crypto industry, after Majority Leader John Thune prioritized other legislation last week.
Thune filed a cloture motion to begin debate on S. 4668 (Protect College Sports Act of 2026). He also submitted cloture petitions for HR 6500, a substitute amendment tied to the continuing resolution, along with Todd Blanche’s nomination for attorney general. No similar filing was made for the CLARITY Act, delaying progress on the digital asset measure.
A cloture motion is required to limit debate in the Senate and move legislation forward. It takes support from 60 senators, meaning Republicans must secure Democratic backing before advancing the bill to the floor.
According to crypto reporter Eleanor Terrett, the decision to prioritize the college sports measure suggested lawmakers had not yet reached a cross-party agreement needed to advance the market structure proposal.
Although the missing procedural step does not end the legislation, it leaves less time for senators to begin formal consideration before Congress goes into its August recess.
Thune later sought to reassure supporters that the proposal remains under consideration. He described the delay as a scheduling decision rather than a sign that the legislation had stalled permanently, explaining that Senate leaders were addressing other priorities while continuing discussions behind the scenes.
Earlier this month, Thune also expressed confidence that lawmakers would eventually vote on the legislation, while acknowledging that the Senate calendar remains crowded with competing priorities.
Several issues continue to complicate negotiations. Among the most contentious are ethics provisions related to crypto ownership by elected officials and senior government leaders. Other unresolved topics include rules governing stablecoin incentives and protections for developers who build noncustodial blockchain technology.
Bitwise CIO Matt Hougan cautioned that failing to move the bill before the August break could significantly slow its prospects. While the proposal would technically remain active, he said an extended delay could create additional legislative hurdles later in the year.
Even so, Hougan argued that the sector is unlikely to stop evolving if Congress takes longer to act. He suggested that future rulemaking by the SEC could continue shaping the industry as banks and other financial firms deepen their involvement with crypto markets.
Market sentiment has become more measured as the Senate’s window for action narrows. Prediction platform Kalshi currently assigns a 41% chance that the legislation becomes law before July 1 next year. Those odds rise to 58% before October 1, 2027, and 65% before January 1, 2028, reflecting expectations that the process will likely extend beyond this year.
Unless Senate leaders file cloture, secure bipartisan backing, or adjust the chamber’s schedule, the measure’s path to a floor vote remains uncertain. As the legislative break looms, firms like Bit Digital Inc. (NASDAQ: BTBT) will be tracking any news coming out of Capitol Hill to see whether progress on this crucial piece of legislation has been made.
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