Regulation
John Kennedy Presses On CLARITY Act Vote As Congress Nears Recess
The CLARITY Act stalls before Congress recess as Circle posts strong earnings and global crypto regulation continues to advance.
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BLOCKINSIDERLoadingThe CLARITY Act stalls before Congress recess as Circle posts strong earnings and global crypto regulation continues to advance.
The Clarity Act has become one of the biggest legislative challenges facing the U.S. Congress. The revised draft aimed at creating a comprehensive market structure framework for digital assets, recently faced another setback.
Now, with Congress mere days away from its scheduled recess, the question arises whether the Act will see the light of day before 2026 ends.
As lawmakers worked to finalize amendments before the August recess, debate intensified over ethics provisions and the balance between federal and state oversight. Senate Majority Leader John Thune confirmed the legislation would not reach a final vote before the August recess.
Since then, many senators have expressed criticism over the delay and handling of the bill. Senator John Kennedy brought up the CLARITY Act in Congress on Wednesday, stating that Congress needed to vote on it immediately.
“We need to vote on the crypto bill. We’ve spent years on it. If we’re waiting for consensus, it’s not going to happen,” stated Kennedy.
Last month, Securities and Exchange Commission (SEC) Chairman Paul Atkins expressed support for the bill.
“The SEC stands ready to provide technical assistance as Congress advances the CLARITY Act.”
However, with the Congress preparing for its recess in 2 days, it seems unlikely for the bill to pass in August. The question is whether, following the return of the Senate in September, the bill could pick up momentum? The answer is uncertain.
Polymarket data shows that the prediction for the Act’s approval in 2026, which was at 79% in May, has dropped to 14%, taking a major hit in August.
Mizuho Bank Managing Director Dan Dolev stated that the Clarity Act will NOT pass in August.
"Clarity Act is not happening. It’s off the table this year. It’s going to happen at some point, but it will not happen in this year (2026)."
On the other hand, New York Attorney General Letitia James urged Congress to revise provisions that could preempt state consumer protection and anti-fraud powers. This back-and-forth will likely keep the approval off the table for this year.
Regulations across the world are moving forward, considering the crypto market. South Africa announced that Bitcoin and crypto sent offshore will now be subject to a limit. Individuals will only be permitted to move crypto worth $120,000 per year offshore.
If said individual is tax compliant, this ceiling is raised to $600,000. Additionally, crypto exchanges have been directed to report offshore transfers from citizens. This surveillance is directed at identifying malicious participants.
When it comes to regulatory compliance, USDC issuer Circle continues to top the list. Its Q2 results exceeded expectations today, posting a 7% surge in total revenue, sitting at $701 million.
Competing with Tether’s USDT, USDC has seen a considerable increase in stablecoin issuance. Year over Year, USDC circulation grew by 19% to reach $73.3 billion.
While USDT is miles ahead at $183 billion, USDC captured nearly 70% of stablecoin transaction volume in June. The growth is due to the surge in demand for stablecoins across institutions.
Circle also announced that it will be launching its Arc Mainnet on September 16. Over the past quarter, Arc has seen a surge of 106% in the total transactions conducted, reaching 502 million.
The USDC issuer also became the first of its kind to receive the federal trust bank charter from the OCC to establish Circle National Trust. The charter reinforces Circle's standing as one of the leading regulated crypto companies.
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