The CLARITY Act, a major digital asset market structure bill, faces delays and opposition after passing the U.S. House of Representatives. A draft from the Senate Banking Committee targeted September 30 for completion, but a potential government shutdown has stalled progress. This regulatory uncertainty has coincided with nearly $1 billion in cryptocurrency fund outflows, according to market data. Key disputes involve Democratic demands for ethics rules and bailout bans, Republican resistance, and industry opposition to provisions that would prohibit interest-bearing stablecoins.
The CLARITY Act was first introduced in May 2025 and passed the House on July 17 by a vote of 294 to 134. Senate Banking Committee Chairman Tim Scott later released a revised text in July with a September 30 target date for the legislation.
That timeline was disrupted by potential government shutdown delays expected in October and November. Market data from CoinShares shows nearly $1 billion in outflows during this period of delay, indicating investor sensitivity to regulatory clarity.
Democrats are pushing for the inclusion of ethics provisions and a ban on bailouts, which Republicans reject. The crypto industry, led by firms like Coinbase, opposes language that would outlaw interest-bearing stablecoins and establish the SEC as the primary regulator.
Banks have expressed concerns that yield-bearing stablecoins could draw deposits away and threaten financial stability. With mid-term elections approaching, political dynamics could either accelerate the bill’s passage or delay it until 2027.
