Clarity Act Stumbles Over 2 Hurdles on Path to Senate Vote

Two disputes are holding up the Clarity Act’s path to a Senate floor vote. An ethics agreement collapsed on Tuesday. In addition, concerns from law enforcement groups remain another key hurdle.

The Senate has 31 session days left before the August recess, and the bill needs 60 votes.

Ethics Deal Falls Apart Behind Closed Doors

According to Crypto In America, Tuesday’s closed-door meeting was the first since a bipartisan group of senators reached a tentative ethics framework in May. 

Senators Kirsten Gillibrand, Ruben Gallego, Bernie Moreno, and Cynthia Lummis attended. White House Crypto Council Executive Director Patrick Witt joined them.

During the session, Republicans and the White House walked back a provision that would have allowed state attorneys general to sue the Department of Justice (DOJ). The clause covered failures to enforce ethics rules tied to President Donald Trump. His family has earned an estimated $2.3 billion from crypto ventures.

Republicans offered to limit enforcement authority to the Attorney General and floated impeachment as a remedy. However, Democrats rejected the ideas.

“The group is expected to reconvene Thursday in another attempt to break the impasse…Democrats, including Gallego and Senator Angela Alsobrooks (D-MD), indicating that their continued support for the legislation depends on the inclusion of strong ethics guardrails addressing President Trump’s crypto business interests,” Eleanor Terrett wrote.

Follow us on X to get the latest news as it happens

Law Enforcement Targets Section 604

Another point of contention comes from law enforcement agencies. They argue that parts of the CLARITY Act may limit their ability to track, investigate, and prosecute criminal activity involving blockchain networks, including money laundering and other forms of illicit finance.

The White House Crypto Council hosted representatives from the National Sheriffs’ Association, the Fraternal Order of Police, and the National District Attorneys’ Association on Wednesday. Officials from the DOJ, Treasury, and FinCEN also joined.

“The meeting is expected to focus on Section 604 of the bill, the Blockchain Regulatory Certainty Act…Some law enforcement groups worry the provision could make it harder to pursue bad actors operating onchain,” the post added.

Senators Mark Warner and Catherine Cortez Masto have tied their support to law enforcement’s sign-off. Prediction markets reflect the strain from these obstacles. Polymarket traders now price the bill’s 2026 passage odds near 48%, down from 74% a month ago.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

The post Clarity Act Stumbles Over 2 Hurdles on Path to Senate Vote appeared first on BeInCrypto.