Senate stalls CLARITY Act as bipartisan negotiations hit impasse

Thune’s decision to move on the Protect College Sports Act and the nomination of Todd Blanche for attorney general leaves the crypto legislation without the 60-vote threshold process required to begin floor debate. While Thune described the delay as a matter of legislative sequencing, the absence of a cloture filing suggests unresolved friction. Key points of contention include stringent ethics restrictions on official crypto holdings—championed by Senator Elizabeth Warren—alongside disputes over stablecoin rewards and noncustodial developer protections.

Industry observers remain divided on the consequences of the stall. Bitwise CIO Matt Hougan warned the bill could enter a “walking dead” phase if it fails to clear the Senate before lawmakers leave Washington, potentially pushing meaningful action deep into 2027. Conversely, SEC Commissioner Hester Peirce maintains that the work remains vital, noting that jurisdictional clarity is necessary regardless of the bill’s immediate timeline. Prediction markets reflect this growing skepticism, with Kalshi currently pricing the probability of the act’s passage before July 2027 at just 41%.