Woofun AI reports that the CLARITY Act faces significant legislative headwinds due to controversies surrounding President Trump’s crypto interests. Senate Majority Leader John Thune indicated the bill is unlikely to pass before the August recess. Democrats are demanding ethical provisions restricting officials from profiting via crypto, a measure previously opposed by Republicans.

Polymarket data shows the probability of the act passing this year has declined to approximately 37%, down from over 80% earlier in the spring. Wintermute’s Ron Hammond noted that while sufficient votes may exist, electoral politics currently dominate. Analysts suggest the bill could be further sidelined by priorities like government funding, with potential passage delayed until after the November elections.