The industry’s biggest legislation has faced yet another setback. The US Senate will not take up the crypto market structure bill before lawmakers leave Washington for the month-long recess, pushing the vote to September instead.

Senate Majority Leader John Thune, speaking through a spokesperson, confirmed there will be no vote on the CLARITY Act in August but said the measure is expected to be considered once the Senate returns.

Thune said Democrats remained opposed to holding a vote before the recess.

“The Dems are insistent on no CLARITY vote… I worked with sponsors of the bill. Senator Lummis was great, and we’re getting that queued up first thing when we come back.”

CLARITY Act on Hold

With the vote pushed back, senators now have several more weeks to gather the support needed for the legislation. The bill requires 60 votes to advance in the Senate, meaning it cannot pass without some Democratic votes.

Democrats are pushing for stronger safeguards to stop President Donald Trump from benefiting financially from crypto while serving in office. Support from Republicans has also been uncertain in recent weeks. For instance, Senator Josh Hawley earlier said that he will oppose the bill unless it is changed to address concerns from community banks.

Even if the Senate passes the CLARITY Act, the process will not end there. The legislation must go back to the House for approval before it can be sent to President Donald Trump for his signature.

Not everyone sees it as a major blow to the industry. Before the Senate confirmed the delay, Bitwise Chief Investment Officer Matt Hougan had stated that missing the August vote would not derail the industry’s long-term growth. He expects lawmakers could revive the legislation when Congress returns in September or during the year-end session.

Hougan said the biggest concern is the uncertainty surrounding the bill, which has kept some institutional investors on the sidelines. While a failed vote could trigger a short-term market dip, he believes a clearer outlook may ultimately boost confidence and support a stronger crypto rally later this year. He also noted that the SEC could still introduce crypto-friendly regulations.

Market Reaction

Major cryptocurrencies drew a muted response following the Senate update. Bitcoin traded around $64,100 on Friday, while Ethereum slipped below $1,900. XRP posted the biggest decline among large-cap tokens and lost over 2.5% to trade at $1.02.

BNB also moved lower, falling 1.4% to $587, while Solana slipped more than 1.7% to $72.6.

Source: CryptoPotato