CLARITY Act Misses Senate Cloture Filing as Crypto Talks Stall

March 12, 2025 — The CLARITY Act failed to receive a cloture filing from Senate Majority Leader John Thune, narrowing its path to a floor vote before the August recess. Thune prioritized spending legislation, nominations and a college sports bill instead, while bipartisan negotiations over the crypto market structure legislation remain unresolved.

Immediate Details & Direct Quotes

Senate Majority Leader John Thune filed cloture on the motion to proceed to S. 4668, the Protect College Sports Act of 2026, according to the U.S. Senate Daily Press. He also filed cloture on H.R. 6500, a substitute amendment to the continuing-resolution vehicle, and Todd Blanche’s nomination to be attorney general. The majority leader did not make a corresponding filing for the CLARITY Act, leaving the crypto bill without the procedural countdown required for an initial cloture vote.

The cloture motion requires support from 60 senators, meaning Republicans cannot advance the legislation without Democratic votes. Crypto journalist Eleanor Terrett said Thune’s decision to proceed with the college sports legislation indicated that negotiators had not reached a bipartisan agreement.

“Thune has filed cloture on the motion to proceed to the college sports bill,” Terrett wrote, adding that it “signals there’s still no bipartisan agreement on the Clarity Act.”

Thune later indicated that the CLARITY Act had not been abandoned and described the delay as a matter of sequencing. “We’re sequencing it, but there are some things still out there that we want to do,” Thune said. His remarks suggested that Senate leaders were still seeking an agreement capable of attracting support from both parties.

Market Context & Reaction

As of Wednesday’s procedural filings, the CLARITY Act’s omission does not formally kill the crypto bill. However, it reduces the time available to begin debate before senators leave Washington for the August recess. Thune had previously said he expected market structure legislation to receive a vote, although he acknowledged the chamber faced a crowded schedule.

“I think market structure we’ll get a vote on. Whether we can get on it or not, we’ll see,” he told reporters on Aug. 3.

Ethics restrictions involving elected officials’ crypto holdings have emerged as one obstacle. Stablecoin rewards and protections for noncustodial blockchain developers have also featured in the negotiations. Sen. Elizabeth Warren has demanded stronger conflict-of-interest rules covering the president, vice president, members of Congress, senior officials and their families. Republicans need at least seven Democratic votes if all 53 GOP senators support cloture.

Prediction-market traders have become more cautious as the Senate’s procedural window narrows. Kalshi placed the probability of enactment before July 1, 2027, at 41%. The odds increased to 58% for passage before Oct. 1, 2027, and 65% before Jan. 1, 2028.

Background & Historical Context

Bitwise Chief Investment Officer Matt Hougan warned that missing the pre-recess window could leave the bill in a “walking dead” phase. The legislation could remain active but face a months-long delay and greater procedural difficulties later in 2026. Hougan nevertheless argued that the digital asset industry would continue expanding without immediate congressional action.

He said Securities and Exchange Commission rulemaking could provide an alternative path while financial institutions increase their involvement in crypto. SEC Commissioner Hester Peirce also expressed confidence that work on digital asset rules would continue.

“I’m still optimistic that the bill will get finished,” Peirce said. She argued that legislation would provide clearer jurisdictional boundaries for investors, companies and regulators. Peirce added that the SEC could continue addressing areas including crypto custody, fundraising and tokenized securities regardless of the bill’s fate.

The CLARITY Act would define the roles of the SEC and Commodity Futures Trading Commission in overseeing US digital asset markets. Without congressional action, regulators will continue working under existing securities and commodities laws while the jurisdictional divide remains unsettled.

What This Means

The bill’s next clear signal would be a cloture filing, a negotiated bipartisan agreement or a change to the Senate schedule. Until then, its immediate path to a floor vote remains uncertain. Kalshi contracts indicate that traders see a longer legislative timeline as more likely than enactment during 2026.

The delay could push final action on the CLARITY Act into 2027, according to prediction-market data. For crypto investors and companies, this means continued regulatory uncertainty around digital asset market structure and the jurisdictional split between the SEC and CFTC. The SEC’s rulemaking work on crypto custody, fundraising and tokenized securities may provide some clarity in the interim, but legislative certainty remains elusive.

This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making investment decisions.

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