The bipartisan digital asset bill cleared the House and a Senate committee but faces a narrowing window before midterm politics take over
The CLARITY Act, once billed as Congress’s best shot at giving the crypto industry a coherent regulatory framework, is running out of runway. Zach Pandl, Head of Research at Grayscale, said the legislation is unlikely to become law this year, even though a deal isn’t technically impossible.
A bill that got far, then stalled
The House passed the CLARITY Act on July 20, 2025, with a 294-134 vote. The Senate Banking Committee followed suit on May 14, 2026, advancing the bill with a 15-9 vote.
Revised text of the bill surfaced in July 2026, and seven Democratic members of the Senate pushed back. Without enough crossover votes, Senate leadership has been unable to schedule the bill for a full vote. With the recess window closing around August 7, 2026, the math simply doesn’t work in the bill’s favor.
Prediction markets reflected the growing pessimism. As of early August 2026, the odds of the CLARITY Act passing had drifted to 50% or lower.
What the bill was supposed to fix
The CLARITY Act was designed to clarify the roles of the SEC in overseeing securities and the CFTC handling digital commodities, creating a structured regulatory framework for U.S. digital asset markets.
Grayscale’s pivot to resilience
Pandl’s commentary shifted framing to emphasize the crypto industry’s ability to function and grow without Congressional blessing, highlighting that on-chain protocols may still find value despite legislative uncertainty.
