The Senate left for its August recess without voting on the CLARITY Act, extending a delay for the cryptocurrency market-structure bill as lawmakers remained divided over an ethics provision and broader support for moving the measure forward. The new holdup adds to an already weakened legislative outlook for the bill, which had previously run into resistance from regional banks and failed to gain enough momentum before the break. Democrats have pushed to add language barring elected officials from profiting from the crypto industry amid concerns about Trump and his family’s crypto-related ventures. The Hill reported that the ethics dispute was a major reason the bill did not reach the floor before recess. Ian Katz, managing partner at Capital Alpha, said the measure still has a narrow path if senators act within three weeks after returning, but added, "It’s really difficult though," and said, "it doesn’t look good." That assessment reinforces earlier signs of fading odds. The bill had already been described as a major setback for the crypto industry after Senate action stalled despite an intensive lobbying push, with regional banks warning that a regulatory framework for stablecoins and other digital assets could pull deposits from local lenders. Analysts have said the U.S. crypto market can continue to function without the legislation in the near term, but that continued delays risk pushing more innovation and investment overseas by leaving key questions around token issuance, securities laws and business rules unresolved.