Democrats to Block CLARITY Act Over Stalled Ethics Talks

Senate Democrats plan to deny cloture on the Clarity Act, according to Punchbowl News, leaving the landmark crypto market structure bill short of the 60 votes required just days before the Aug. 7 recess.

The decision stems from the lack of visible progress on a bipartisan ethics deal that Democrats have made a condition for their support. Senators have sent an ethics text to the White House, but with no response, the procedural vote is set to fail. Sen. Ruben Gallego (D-AZ), who helped craft the compromise with Sen. Thom Tillis (R-NC), expressed frustration: ‘We are clearly here, trying to engage in a constructive manner. At this point, if they’re not engaging, it’s telling me that they don’t want this to happen.’

The ethics dispute centers on demands for enforceable limits on federal officials profiting from digital assets while in office, language aimed at President Trump’s family crypto ventures. Democrats have dismissed the current bill’s provisions as insufficient.

Despite the opposition, Senate Majority Leader John Thune (R-SD) remains committed to holding a procedural vote this week. However, the timeline is tight; he has not yet filed cloture on the motion to proceed due to procedural matters. With Republicans holding 53 seats, at least seven Democratic votes are needed, and currently there are none. If cloture is not filed by Wednesday, the bill will be further delayed.

Sen. Cynthia Lummis (R-WY) has urged Democrats not to block the bill, emphasizing its consumer protections and benefits for the crypto industry. Industry advocates have sent over a million contacts to Congress in support.

Market confidence is fading; Polymarket odds for CLARITY Act passage by 2026 dropped from 27% to 23%. Bitcoin trades around $64,000.

If the vote is held and fails or is delayed, the bill will be postponed until at least September, with politics intensifying.

Source: https://news.bitcoin.com/regulation-and-legal/democrats-block-clarity-act-cloture/