U.S. Treasury Secretary Scott Bessent criticized Senate Democrats for blocking the CLARITY Act, a cryptocurrency market structure bill. Bessent called the opposition “disappointing,” stating it threatens American leadership. Democrats, including pro-crypto senators, withheld support over ethics, developer protections, and illicit finance concerns. A deal on ethics provisions has been reached, but only one week remains before the August recess. Polymarket odds for passage have fallen to a record low of 27% as Republican support also faces a holdout.
Scott Bessent, the U.S. Treasury Secretary, dismissed Senate Democrats for stalling the cryptocurrency market structure bill known as the CLARITY Act. In a statement on Thursday, Bessent noted that the opposition was not surprising but “disappointing.”
Bessent added, “It’s disappointing — but not surprising — that Senate Democrats are choosing politics on the cusp of a major victory for American leadership.” Senate Democrats, including pro-crypto figures Angela Alsobrooks and Ruben Gallego, withheld support over ethics, developer protections under the Blockchain Regulatory Certainty Act (BRCA), and illicit finance provisions.
Bessent argued that the BRCA merely codifies longstanding policy, stating, “non-custodial builders and developers are not, and have never been, subject to registration obligations under the Bank Secrecy Act.” A reported ethics deal between Senator Thom Tillis and Ruben Gallego includes a role for state attorneys general, a key Democratic demand.
The window for passage is shrinking, with only one week before the August recess and other bills like the SAVE America Act being prioritized by President Donald Trump. Republican support is not unanimous; Senator Josh Hawley is a known holdout, according to Senator Cynthia Lummis.
Lummis said, “Republican support is very high. But I don’t think it will be unanimous, as people like Josh Hawley are really resistant. I think we’ll have an overwhelming majority.” Republicans will need over 11 Democratic votes to pass the bill on the Senate floor.
As of early Friday, Polymarket odds for the CLARITY Act’s passage in 2026 dropped to a yearly low of 27%. The market remains pessimistic about progress next week.
