CLARITY Act faces delays as Trump crypto conflicts stall progress, Polymarket odds drop to 37% from 80%.

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The CLARITY Act, a long-awaited US digital asset regulation bill, is facing delays in the Senate due to political disputes over President Trump's crypto ties. Senate Majority Leader John Thune stated that the bill is not expected to pass before the August recess. The legislation aims to establish a clearer regulatory framework for digital assets, but progress has stalled amid disagreements over ethics provisions related to government officials profiting from crypto transactions. Democrats have pushed for such clauses, while Republicans have opposed them. Polymarket odds for the bill's passage this year have dropped to 37%, down from over 80% in the spring. Wintermute policy lead Ron Hammond noted that while support may still exist, election politics are currently dominating. Analysts suggest the bill could be further sidelined if Congress prioritizes funding and defense issues before the term ends, leaving crypto regulation uncertain.