Key Takeaways 

• The CLARITY Act faces fresh setbacks after bipartisan talks on ethics rules and law enforcement provisions collapsed, threatening its path to a Senate floor vote.

• The bill still needs at least seven Democratic votes to clear the Senate’s 60-vote threshold, with key supporters making their backing conditional on unresolved issues.

• With the August recess approaching, lawmakers face mounting pressure to reach a compromise, while prediction markets and analysts increasingly view passage as uncertain.

Bipartisan negotiations over the Digital Asset Market Clarity Act fractured into two tracks last week, leaving the most consequential piece of American crypto legislation in legal limbo, with a hard deadline…