The Senate is delaying action on a major crypto bill that includes a provision requiring federal officials, including the President, to divest from cryptocurrency-related businesses. The measure, known as the Clarity Act, has been a point of contention between Democrats and Republicans in Congress. Senate Majority Leader John Thune said the chamber hopes to pass the bill before leaving town for its August recess, but no vote is expected before then.
The ethics language in the bill was originally proposed by Democrats and has been a major sticking point in negotiations, according to Politico. A counteroffer from Democrats would allow state attorneys general to sue the Justice Department if it fails to enforce the ethics requirements. The ethics provisions in the bill would take effect one year after passage and give federal officials six months to comply with divestment rules.
The ethics requirements would apply not only to the President but also to other federal officials who own stakes in crypto firms worth less than one million dollars. Bloomberg previously reported that the divestment plan could allow Trump to benefit from a tax break that delays capital gains taxes for federal officials who sell certain assets. Senate Republicans are not expecting to vote on the bill before the August recess, which is scheduled to begin Friday.
The bill’s passage has been blocked by a lack of Democratic support, with no Democrats willing to back the measure so far, according to a report from Yahoo Finance. The Digital Asset Market Clarity Act has been postponed again, leaving crypto industry players like Coinbase and Circle in limbo. Senate Majority Leader John Thune said Democrats are insistent on no vote on the bill at this time.
The issue is politically complex, as Republicans lack the votes to override a filibuster and pass the bill without Democratic support. The problem for the Clarity Act is not just technical but also political, with Democrats holding firm on the ethics requirements. Trump’s financial disclosure shows he made approximately four billion dollars in 2025 from crypto and meme-coin-related businesses.
The bill is set to return to the Senate on September 14, giving hope to companies like Coinbase and Circle that they may see progress soon. Coinbase stock rose by five percent on Friday, while Circle’s CRCL was up nearly six percent in trading. The Trump administration’s financial regulators continue to use existing authorities to provide clarity and enable responsible adoption of blockchain technology.
The Clarity Act is part of a broader effort to clarify how the SEC and CFTC regulate digital assets in the United States. Despite delays, the Senate is still aiming to pass other legislation before adjournment, including a stopgap funding bill and Russia sanctions. The Senate also plans to confirm several nominees, including Todd Blanche as attorney general if he gains support from Republican senators.
Senate Republicans do not believe they have enough votes to pass the budget resolution currently under consideration. The delay in the crypto bill reflects broader political challenges within Congress and the lack of consensus on ethics rules for federal officials.