Hopes for key crypto bill fade amid delays, Trump ethics controversy

For nearly a year and a half, the crypto industry has been pressing for legislation known as the CLARITY Act, which would provide a predictable regulatory framework for digital assets. Until this week, industry leaders had high hopes the bill was on the cusp of passing, following a series of hard-won compromises with the banking lobby and other crypto skeptics. Then, on Thursday, the goalposts moved again.

In a move that caught many in the crypto industry by surprise, Senate Majority Leader John Thune (R-SD), told reporters that he did not expect the Senate to pass the bill before the body adjourns for its August recess. While there is still time for the Senate to pass the legislation prior to early January, when the current Congress will conclude its term, the politics surrounding the impending mid-term elections could doom its chances.

Prediction markets suggest most are pessimistic about the CLARITY Act’s chances of passing this year. On Friday, the odds of this on Polymarket stood around 37%, which is far lower than early this summer, and moments this spring when the odds climbed over 80%.

There is bipartisan support for the core elements of the CLARITY Act, which would place blockchain and digital tokens firmly in the realm of mainstream finance. But the issue of President Donald Trump’s crypto connections—which have helped the firs...