Key facts
- The release of the CLARITY Act's new text has been postponed to next week.
- Prediction markets now place the likelihood of the CLARITY Act passing in 2026 at 31%.
- Democrats are concerned about the ethics clauses in the Republican-proposed bill, citing weak consumer protections.
- Senator Ruben Gallego stated that Democrats do not have the votes for the current proposal.
- A House Financial Services Committee hearing will explore the CLARITY Act's potential for digital asset innovation.
The release of the updated text for the CLARITY Act has been postponed to next week, following a meeting between President Donald Trump and Senate Republicans. This delay has led prediction markets, such as Polymarket, to lower the odds of the legislation passing in 2026 to 31%, as lawmakers grapple with significant political differences.
Journalist Eleanor Terrett reported that the revised legislative text remained elusive after Thursday's meeting. Industry leaders anticipate the text's rollout will slip into the following week. Meanwhile, the House Financial Services Committee is scheduled to hold an informational hearing on the CLARITY Act's potential to foster digital asset innovation, though this will not affect the Senate's consideration of the bill.
Republican lawmakers had previously indicated that the new plan would be published soon after the White House gathering. Senator Bernie Moreno expressed optimism about a vote before the August recess, noting President Trump had requested a briefing. Senator Cynthia Lummis also shared hopes for the draft's public release post-discussion, without providing a specific timeline.
Democrats have voiced uncertainty regarding the negotiations, primarily focusing on ethics clauses linked to President Trump's business dealings in the crypto industry. Senator Ruben Gallego, a lead Democratic negotiator, stated that the proposed ethics language was insufficient and that the bill offered limited consumer protections. A Democratic Senate aide echoed these concerns, describing the Republican plan as less ambitious than what Democrats are willing to accept and noting that Democrats had not reviewed or approved the draft during Thursday's talks. Despite these challenges, Senator Cory Booker indicated that discussions are ongoing, emphasizing the necessity of a bipartisan pathway to pass the legislation.