U.S. Crypto Bill Stalls Over Democrats’ Ethics Concerns

The Digital Asset Market Clarity Act, known as the CLARITY Act, seeks to establish a federal framework for digital-asset markets and clarify the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Its progress is closely watched because the legislation could reshape compliance requirements and provide greater regulatory certainty for cryptocurrency companies operating in the US.

Democratic Senator Ruben Gallego of Arizona said Congress could still complete work on the crypto bill even as negotiations over ethics provisions remained stalled. Gallego cautioned that forcing a CLARITY Act vote before lawmakers reach sufficient agreement could set the legislation back, while maintaining that Congress can still “land this plane.” The reports cited no scheduled vote date or specific financial amount.

U.S. crypto market rules straddle the Securities and Exchange Commission and the Commodity Futures Trading Commission, putting four congressional committees at the center of legislation. If the Digital Asset Market Clarity Act dies in the current Congress, lawmakers would have to restart in January 2027. Committee control would then determine whether market-structure legislation remains a priority and how aggressively Congress scrutinizes President Donald Trump’s digital-asset businesses and potential conflicts of interest.

As of Aug. 11, 2026, the Clarity Act had not received a Senate floor vote, leaving September as its brief remaining window. Kalshi put Democrats’ chances of winning the House at 84% and the Senate at 47%. A House flip could return Maxine Waters to the Financial Services Committee chair and elevate Shontel Brown at Agriculture; a Senate takeover could put Elizabeth Warren atop Banking. All three have opposed major crypto bills, while Stand With Crypto gives each a failing grade.

The U.S. House Financial Services Committee is advancing a crypto market structure bill aimed at clarifying regulatory authority over digital assets and addressing differences in the rules governing stablecoin issuers and banks. Congressional approval would give the industry a clearer legal framework, affecting how cryptocurrencies are issued and traded in the United States and how financial institutions participate in the market.

Committee Chairman French Hill recently said the market structure bill was a major priority and expressed optimism that it would pass the U.S. Senate. Reports did not disclose a voting date, vote count or any related financial amount. The next key test is whether senators can reach consensus on the regulatory differences between stablecoin issuers and the banking industry and set a timetable for consideration and a vote.

The US Congress is advancing the CLARITY Act, which seeks to define the respective authority of the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital assets. The bill has implications for trading platforms, stablecoins and developer liability, but the Senate Banking Committee must first resolve regulatory disagreements before sending it to the full Senate for a vote.

Senators filed more than 100 amendments ahead of the committee's May 14 markup. Democratic Senator Elizabeth Warren submitted more than 40 proposals covering stablecoin yield, protections for software developers and ethics rules for public officials, including provisions targeting Trump. Committee Chairman Tim Scott declined to hold a separate vote on a banking industry-backed proposal to restrict yield.