The CLARITY Act is now in a race against time. Passing the bill has been a fundamental pillar of President Donald Trump’s strategy for establishing U.S. leadership in digital asset innovation
The CLARITY Act is now in a race against time. Passing the bill has been a fundamental pillar of President Donald Trump’s strategy for establishing U.S. leadership in digital asset innovation. It has also been the main legislative goal of the crypto industry, and with the August recess approaching, that goal looks increasingly uncertain.
Raising the Alarm
Crypto market intelligence account Watcher.Guru reported that the CLARITY Act is no longer projected to be signed into law this year, even as President Trump met with Senators to help advance the bill. The report caught the attention of crypto commentator BankXRP, who pushed back on the delays.
He wrote, “The market doesn’t need more promises; it needs regulatory clarity.” Delays bring more uncertainty, and the crypto market has long argued that the lack of a coherent framework has hindered market growth
Why the Bill Is Stalling
The Polymarket chart is embedded in the Watcher.Guru post tells a stark story. Odds of the Clarity Act passing this year fell from a high of 82% in February to around 40% at the time of writing.
The bill has sat on the Senate Legislative Calendar since early June. Between January and April, industry pushback over stablecoin yield language and DeFi provisions forced lawmakers to postpone planned markups. Seven Senate Democrats would need to defect to advance the bill, and ethical concerns surrounding Trump’s personal crypto holdings have complicated negotiations further.
Strong Calls to Pass the CLARITY Act
Trump called on the Senate to pass the CLARITY Act in memory of Sen. Lindsey Graham, who died on July 11 at age 71 after a sudden illness. Trump noted that Graham was a big supporter of the bill. However, his death also narrowed the already-thin Senate Republican majority, adding another layer of complexity to the bill’s path forward.
The Midterm Problem
Pressure is mounting on key sponsors, as the Act risks long-term delay if it cannot progress before the August recess. Congress will focus on the midterm elections for the rest of 2026. If the bill misses that window, the next Congress in January 2027 would determine whether to advance the legislation or adopt a new approach entirely.
Reactions among market participants varied. Some saw the delay as a buying opportunity and a chance to accumulate tokens before any potential passage.
Others warned that if the bill misses the pre-midterm window, it likely won’t pass during the Trump administration at all. Many market participants are frustrated because of the delays, and all eyes are now on the Senate and its next moves.
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