CLARITY Act: Senate Republicans Warn Crypto Bill May Fail Next Week

CLARITY Act, the most-awaited crypto legislation, faces another obstacle amid standoff in the US Senate. Republican Senators warned that the crypto market structure bill is likely to fail when the chamber returns next week. After months of talks, the Senate has failed to resolve a fight over ethics rules covering the president and his family.

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CLARITY Act Faces Further Delay in Senate

Democratic aides revealed that there’s little movement on the key Democratic demand over ethics provision in the CLARITY Act to prevent President Trump and his family to profit off crypto assets.

Senate Republicans warned that the vote is slipping away. Senator Mike Rounds said the progress “does not look good right now.”

Senator Thom Tillis, a key bipartisan negotiator for the CLARITY Act, said the bill will fail unless the White House approves the ethics provision. “If there’s no interest in the White House in trying to bridge the gap on the ethics language, it is going to fail,” he said.

Meanwhile, a White House spokesperson said President Trump is “unequivocal: Congress must pass the CLARITY Act so we can stay ahead of foreign competitors and lead the world in innovation.”

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Crypto Industry’s Midterm Elections Funding to Resolve Ethics Issue?

A failed crypto bill vote could motivate the crypto industry to spend money in key Senate and House races. However, Senator Roger Marshall said, “There’s nothing I can do with the crypto bill. Haven’t heard a peep about it. Nobody back home is asking about it.”

Fairshake-linked nonprofit Cedar Innovation Foundation is launching three ads on the CLARITY Act ahead of Senate vote. The series of national ads in the coming days is aimed at shoring up support for the crypto bill.

However, Democrats still call the ethics provision weak, arguing it leaves family businesses largely untouched. They also insist on state attorneys general overseeing compliance due to skepticism of federal effectiveness.

Community banks and some Republican senators have objected to how the bill treats stablecoin rewards, claiming deposit flight risks. Republican Senator Josh Hawley and Rand Paul have been listed as likely no votes. Others have said they cannot support the current text without further bank-friendly changes.

Senate Votes on CLARITY Act on September 15

The Senate will proceed with a cloture vote on September 15 at 2:15 PM ET. If invoked, it will limit negotiations and further debate on the crypto bill. The crypto bill requires 60 votes to overcome the Democratic filibuster.

Debates and roll call votes will follow. If passed, the Senate begins final votes that require only simple majority. Senators will have a 15-day window of session before focus fully shifts to the November midterm elections.

However, U.S. House Leadership canceled sessions for the last two weeks of September and will head for the midterm elections recess by September 17. This puts the CLARITY Act at risk of becoming law this month, even if the Senate passes the bill.

Odds of the CLARITY Act getting signed into law in 2026 dropped immensely on Polymarket as the House cancels late-September sessions ahead of the Senate vote.