The Senate has shelved the Clarity Act, a landmark cryptocurrency regulation bill, as an ethics dispute over restrictions on federal officials’ crypto holdings threatens to derail the legislation before the August recess. The Digital Asset Market Clarity Act (H.R. 3633) had been expected to reach a floor vote in late July, but lawmakers have deprioritized the 616-page bill as competing legislative priorities and unresolved ethics conflicts consume the chamber’s limited time.

Seven Senate Democrats, led by Senators Chris Murphy of Connecticut, Chris Van Hollen of Maryland, and Jeff Merkley of Oregon, formally rejected the latest version of the bill on July 22 and 23, 2026, citing insufficient ethics protections. The dispute…