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CLARITY Act Countdown: The Senate Has Days Left to Move Crypto's Biggest Bill

The Senate breaks for recess on Friday and the CLARITY Act still has no cloture motion filed. Galaxy just cut its 2026 passage odds from 50 to 30 percent.

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Categories: Regulation

Clarity Act Updates: Why is this week the deadline?

Senate Majority Leader John Thune says he still expects a floor vote on the CLARITY Act this week, even though the chamber has only a handful of legislative days left before its August recess. The Senate has until Friday to act, after which lawmakers do not return until 14 September.

Under Senate rules, Thune had to start the procedural clock on 4 August to allow an August 6 vote on whether to even open debate. That opening vote needs 60 of 100 senators to say yes before the bill and its amendments can be considered at all. As of Tuesday, the bill was still not on the official floor schedule and no cloture motion had been filed.

Can it actually get 60 votes?

That is the real problem. Republicans hold 53 seats, so at least seven Democrats have to cross over. Committee support suggests two are already there, Ruben Gallego and Angela Alsobrooks, while Chris Murphy, Chris Van Hollen and Jeff Merkley formally came out against the bill in mid-July after a merged draft dropped an ethics provision Democrats had treated as a condition.

The prediction markets have noticed. Polymarket odds on the CLARITY Act becoming law in 2026 have slid to roughly 28 percent, down from a February peak of 82 percent. Galaxy Research cut its own enactment estimate from 50 percent to 30 percent this week.

What does the bill actually change?

The core of the CLARITY Act is jurisdictional. The SEC keeps oversight of investment contracts and tokenized securities, while the CFTC gains full spot market authority over digital commodities, a real expansion given it currently holds derivatives jurisdiction with limited reach into spot markets.

A grandfather clause in the current draft would treat tokens tied to spot ETFs listed before 1 January 2026 as commodities by default, covering XRP, Solana, Litecoin, Hedera, Dogecoin and Chainlink. New projects would also be allowed to raise up to 75 million dollars a year without full SEC registration, subject to disclosure. JPMorgan flagged that provision alone as capable of pulling onshore venture activity back from offshore.

Clarity Act Failure: What happens if the window closes?

Failure in 2026 would not kill the bill. It would push final passage into 2027, an election-shadowed year, with the agencies carrying the regulatory load in the meantime. Each missed deadline has chipped away at confidence that Congress can deliver a comprehensive framework before election-cycle gridlock sets in.

For traders, the near-term read is simple. A successful procedural vote before Friday is a genuine positive catalyst. Another slip means the regulatory story goes quiet until mid-September.

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