House cuts September meeting, CLARITY bill faces delay

The CLARITY Act faces new agenda obstacles

The Republican leader of the U.S. House of Representatives canceled eight voting days and set the congressional recess date for September 17, which caused the advancement of the CLARITY Act to encounter new time obstacles.

Summary

The House has cancelled voting sessions for the weeks of September 21 and September 28. The Senate is expected to hold a procedural vote on the CLARITY Act on September 15. Any Senate changes will require further action by the House before the bill can be sent to President Trump. Polymarket traders predict a 17% chance of the bill passing in 2026.

House schedule is compressed, CLARITY bill is tight

House Majority Whip Tom Emmer's office has notified Republican lawmakers that leadership has removed the two weeks of September 21 and September 28 from the voting schedule, cutting eight scheduled legislative working days. Under the revised schedule, lawmakers will return for four voting days after Labor Day before leaving Washington on September 17. The House is not expected to resume regular legislative work until after the November 3 midterm elections. House leaders did not mention the CLARITY Act when announcing the schedule change. However, the shortened session limits the time it takes to complete any bill sent back to the House for consideration after Senate revisions.

Senate votes to initiate debate rather than pass bill

Senate leaders are expected to hold a procedural vote on the CLARITY Act on September 15. The vote requires the support of at least 60 senators to initiate formal review of the bill. Passing a procedural vote is not the same as final passage of the bill in the Senate. Senators can still debate the text, propose amendments, and hold other procedural votes before taking a final vote. According to previous reports, Miller Whitehouse-Levin, CEO of the Solana Policy Institute, set the possibility of the bill becoming law before the midterm elections at 10%, arguing that legislative days are limited and negotiations between senators have not yet resolved differences. Senate Republicans cannot reach the 60-vote threshold without Democratic support. The negotiations covered the president's code of ethics for cryptocurrency, anti-money laundering requirements, state enforcement powers, decentralized finance, and how stablecoin rewards should be handled.

stablecoin rewards remain a key issue in the Senate

stablecoin rewards have become one of the main points of disagreement between banks and cryptocurrency companies in Senate negotiations. The Senate text would ban the payment of rewards based solely on the customer's holding of payments in stablecoin balances, but allow specific rewards related to transactions or other activities. Banks believe activity-based incentives could allow cryptocurrency platforms to provide bank-like returns without having to face the same capital, liquidity and regulatory requirements as insured deposit-taking institutions. Cryptocurrency companies oppose restrictions that restrict exchanges and other service providers from sharing revenue with users. Industry representatives also believe that a strict ban could reduce competition in dollar-backed digital payments. The controversy came after the passage of the GENIUS Act, which established federal rules for paying stablecoin issuers. Its implementation has created the need for lawmakers and regulators to address the issue of how third-party platforms promote or distribute rewards related to stablecoins. According to data from the forecast platform, Polymarket traders currently put the probability of passing the bill in 2026 at about 17%, although its price represents traders 'positions rather than formal legislative forecasts. Another Polymarket contract shows that Democrats have a 90% chance of winning the House and a 52% chance of winning the Senate. If the bill is not completed by the end of this Congress, lawmakers will have to restart the process in the next Congress. A post-election lame-duck meeting could provide another opportunity, but the outcome of the midterm elections could affect whether party leaders give the bill enough time to review.

SEC promotes independent cryptocurrency rule-making

Despite the tight schedule, Securities and Exchange Commission Chairman Paul Atkins remains optimistic about the Senate's progress. In a recent public statement, Atkins said he hopes the Senate can push the legislation within two weeks. Atkins described the bill as part of an effort to establish legal rules for the U.S. cryptocurrency market. However, Congress still needs to complete every procedural step before Trump can sign the bill. The SEC has also begun to develop rules that do not rely on passage of the CLARITY Act. In August, the agency proposed the "Rules for the Regulation of Cryptocurrency Assets," a 402-page framework covering token issuance and qualified investment contracts. The proposed rule includes two funding exemptions. One allows eligible issuers to raise up to $5 million in funds over 12 months, and the other allows offerings of up to $75 million with enhanced disclosure and investor protection requirements. The rule also proposes a safe harbor clause that allows eligible tokens to no longer be considered investment contracts after they meet decentralization and disclosure conditions. As the proposal still requires public consultation and may be revised, a final exemption has not been created for issuers. The SEC is also preparing a separate guide called the "Innovation Waiver for Tokenized Securities." Atkins said the measure could provide companies with a regulated way to test blockchain-based financial products, although tokenized stocks and bonds would still be subject to federal securities laws.