The path of the Digital Asset Market Clarity (CLARITY) Act, a bill intended to establish comprehensive guidelines for regulating cryptocurrencies, remains uncertain as the U.S. Congress is set to pause for another state work period in a matter of weeks.

Since passing the U.S. House of Representatives in July 2025, the CLARITY Act has faced several hurdles in Congress, from industry opposition to stablecoin rewards to lawmakers’ concerns about ethics. The bill passed the Senate Agriculture Committee in January and the Senate Banking Committee in May, along party lines, and sent it to the full chamber for consideration.

But on Wednesday, US President Donald Trump canceled the signing ceremony of the 21st Century ROAD to Housing Act, a housing bill that received bipartisan support in both houses and included a ban on central bank digital currency (CBDC). Trump has said he won’t sign the bill until Republicans in Congress pass the SAVE America Act, requiring voters to present proof of U.S. citizenship in person to register, then added in March that he “will not sign any other bills” until it passes.

The president’s move calls into question the future of the CLARITY Act, despite previous declarations signaling his support for the act. If Trump vetoes the bill, Congress could reject it with a two-thirds vote in both chambers. Under the United States Constitution, if the president does not sign or veto a bill within 10 days of Congress convening, the bill automatically becomes law.

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On Monday, Senate Republican leaders, including Banking Committee Chairman Tim Scott and Majority Leader John Thune, said they were urging the chamber to pass CLARITY in July. Lawmakers are scheduled to be out of Washington and on state work periods until July 13, giving them four weeks to take up the bill before the state’s month-long work period in August.

Source: Senator Tim Scott

“We have been negotiating on the CLARITY Act since last Labor Day and it has been an arduous process.” he said Senator Cynthia Lummis, one of the bill’s supporters, added in an interview with Fox Business last week:

“We’re still working on DeFi a little bit, we’re working [on] illegal finances, we are working a bit on ethics [..] We’ve finally gotten to the point where we’ll publish the text on July 4 and take a final hard look at the bill, and then move on in July.”

What happens if lawmakers face more delays on CLARITY?

Republicans hold a slim majority in the U.S. Senate, where they will need support from Democrats if there is a vote on CLARITY next month. Many Democratic lawmakers have pushed for ethics provisions to be included in the bill, citing the Trump family’s ties to the cryptocurrency industry through the president’s Memecoin and his sons’ involvement with the World Liberty Financial platform and a Bitcoin mining company.

If Republicans do not reach the 60-vote threshold in the Senate by August, many experts expect lawmakers involved in re-election campaigns could delay the passage of CLARITY, potentially postponing the legislation until the next session of Congress in 2027.

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