CLARITY Act Faces Senate Setback Ahead of Key Vote

The CLARITY Act is facing another major hurdle in the U.S. Senate as lawmakers remain divided over ethics provisions tied to President Donald Trump and his family. Republican senators have warned that the highly anticipated crypto market structure bill could fail when the chamber returns next week.

Democratic aides say negotiations have made little progress on demands for stronger restrictions preventing the president and his family from profiting from cryptocurrency activities. Senator Mike Rounds said the outlook “does not look good right now.”

Senator Thom Tillis, a key negotiator in the bipartisan talks, warned that passage may depend on the White House accepting a compromise on ethics rules. He said the CLARITY Act is likely to fail without White House willingness to bridge the divide. The administration, meanwhile, maintains that Congress should pass the legislation to strengthen U.S. leadership in digital asset innovation.

Crypto industry groups are increasing pressure ahead of the vote. The Fairshake-linked Cedar Innovation Foundation plans to launch three national advertisements supporting the CLARITY Act. A failed vote could also encourage the crypto sector to increase political spending during the upcoming midterm elections.

However, disagreements extend beyond presidential ethics. Democrats argue that current restrictions do not adequately cover family businesses and want state attorneys general to have enforcement authority. Community banks and several Republican lawmakers have also raised concerns about stablecoin rewards, warning they could encourage deposits to leave traditional banks.

Republican Senators Josh Hawley and Rand Paul are considered potential no votes, while other lawmakers are seeking additional bank-friendly changes.

The Senate is scheduled to hold a cloture vote on the CLARITY Act on September 15 at 2:15 p.m. ET. Supporters need 60 votes to overcome a Democratic filibuster before the legislation can advance toward a final vote.

Even Senate passage may not produce a quick breakthrough. House leadership canceled sessions for the final two weeks of September and is expected to begin its midterm election recess by September 17. The shortened congressional calendar has further reduced the chances of the CLARITY Act becoming law soon, with prediction-market odds of passage in 2026 falling sharply.