Disagreements over the CLARITY Act intensified in the U.S. Senate ahead of a key procedural vote scheduled for September 15. As the Treasury Department urged lawmakers to pass the bill, Democrats prepared counterproposals to the Republican plan, while Polymarket odds of the legislation becoming law in 2026 fell to 16%.
U.S. Treasury Secretary Scott Bessent urged the Senate to advance the CLARITY Act, a bill aimed at regulating the cryptocurrency market. The legislation’s prospects remain uncertain, however, as Democrats objected to the latest version proposed by Republicans and plan to prepare counterproposals.
Republican amendments to the bill, agreed with Donald Trump, expand controversial provisions related to ethics and conflicts of interest. The compromise, however, failed to satisfy several Democratic senators. According to Politico, Democrats involved in the negotiations prepared a counterproposal after a meeting in Senate Minority Leader Chuck Schumer’s office and plan to send it to Republicans ahead of the key procedural vote.
Despite the Treasury secretary’s call to accelerate passage of the CLARITY Act, the bill’s fate largely depends on whether Republicans and Democrats can reach an agreement on the disputed provisions. Failure in the procedural vote scheduled for September 15, 2026, could once again delay the creation of a unified regulatory framework for the U.S. cryptocurrency market.
Beyond the political disagreements, the latest version of the CLARITY Act also drew criticism from industry organizations. The main points of contention include:
- 8 banking associations argue that the bill preserves loopholes allowing stablecoin holders to receive rewards that effectively resemble interest on bank deposits. The Treasury Department would be able to restrict such payments only in the event of substantial deposit outflows from local banks, and that authority would remain in effect for just 18 months after the law takes effect;
- the Indian Gaming Association is calling for explicit language stating that federal commodities law doesn’t preempt state and tribal gambling laws, including the Indian Gaming Regulatory Act;
- a coalition of 18 state attorneys general also opposed the bill.
The uncertainty was also reflected in expectations among participants in the Polymarket prediction market. After the new version of the bill was released, the odds that the CLARITY Act would become law by the end of 2026 initially rose to 35%, before falling to 16%.
The Republican revised version of the bill also expands legal protections for cryptocurrency industry participants. It would retain provisions preventing software developers from automatically being classified as money transmitters or financial institutions under the Bank Secrecy Act and extend those protections to miners and validators. The text also removes references to the section governing liability for operating an unlicensed money transmission business.
In addition, the new version strengthens requirements aimed at preventing conflicts of interest and trading through affiliated entities on digital commodity platforms. It also clarifies the application of consumer protection laws.
The CLARITY Act is intended to establish rules for regulating the U.S. digital asset market and delineate the authority of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In 2026, the regulators already partially delineated their respective authority by agreeing to coordinate in areas of overlapping jurisdiction.
For more on the disagreements surrounding cryptocurrency legislation in the U.S., read CP Media’s special report.
