Clarity Act Cloture Fails as House Cancels Votes Before Recess

The Digital Asset Market Clarity Act failed to advance in the Senate on Tuesday, according to PYMNTS. The procedural vote fell short, ending the bill's chance of becoming comprehensive federal market structure legislation for now.

House Speaker Mike Johnson announced on Wednesday that Thursday’s scheduled votes were cancelled. Lawmakers will return to Washington only after the November midterm elections. They had been back in session for just seven days since the August recess. More than 100 Democratic representatives had called for cancelling the recess entirely to address artificial intelligence concerns.

Coinbase shares dropped approximately 7% following the news. CEO Brian Armstrong said on X: “The CLARITY Act didn’t advance in the Senate today, which was a disappointment. While it’s possible bi-partisan conversations continue and it lives to fight another day, we can’t wait on Congress anymore.”

SEC Chairman Paul Atkins wrote that the agency would act within its statutory authority. “I have been unequivocal: with or without legislation, we will act decisively within the SEC’s statutory authority to deliver certainty for American investors,” Atkins said.

A joint statement from major banking groups pressed Congress for specific modifications to the rules governing stablecoin interest. The groups expressed readiness to work with stakeholders on this issue, highlighting the ongoing debate over whether stablecoins should function primarily as payment rails or as deposit-like accounts.