Key highlights:
- Mike Belshe says US Senators are stalling the CLARITY Act’s progress to milk cash from crypto lobby groups
- The BitGo CEO predicts that the bill will become law, but a 2026 passage is extremely unlikely
- Senators are still haggling over key provisions of the bill as odds drop to new lows
BitGo CEO Mike Belshe has blamed the delay in the CLARITY Act's passage into law on US Senators stalling to rake in more cash from the cryptocurrency industry. Crypto companies and advocacy groups have ramped up lobbying efforts to push the CLARITY Act across the finish line, but passage in 2026 remains unlikely.
BitGo CEO lays a weighty allegation on US Senators
Mike Belshe, in an X post, revealed his thoughts on the reasons behind the falling odds of the CLARITY Act becoming law in 2026. According to the BitGo CEO, Senators are milking the upsides of delaying the bill, courting the attention and funds of crypto firms and lobby groups.
Belshe added that the CLARITY Act will eventually become law, noting that Senators are only stalling to squeeze cash from the industry. In his post, he claimed that the CLARITY Act is “worth more to Washington one vote away from passage than it is after passage.”
“There is no way CLARITY doesn’t pass,” said Belshe. “Senators are just taking another round of cash extraction from crypto companies before they finish up.”
A bird’s-eye view reveals a pattern of heavy spending by the cryptocurrency industry to pass the CLARITY Act. According to campaign-finance analysis cited by The American Prospect, crypto interests have spent about $189 million on House and Senate races in 2026.
Meanwhile, the industry splurged more than $119 million backing pro-crypto candidates in the 2024 election, with the expectation that Congress would deliver clear rules for the industry. Amid the delays for the CLARITY Act, over 200 crypto firms teamed up to pressure Senators to speed up passage of the bill, adding to a laundry list of lobby groups turning up the heat for Congress.
CLARITY Act odds tank as Trump administration races for alternative
In recent weeks, chances for the CLARITY Act to pass have gone from bright to bleak. Over the weekend, Galaxy cut its odds for the bill becoming law in 2026 to 10%, noting that it will take a “magical” effort to pass the bill before 2027.
Despite pressure from lobby groups, the CLARITY Act fell down the Senate pecking order with the August recess and midterm elections standing in the way. While the Senate is scheduled to return on September 14, Senators are squabbling over ethics provisions, stakes and rewards, and regulatory jurisdictions.
While the Trump administration is fully committed to the CLARITY Act, recent developments suggest that the White House is probing for an alternative. Furthermore, Trump will meet with crypto executives at the White House, with pundits hinting that a key agenda will be to deliberate on life without the CLARITY Act.
Meanwhile, the US Securities and Exchange Commission (SEC) is inching forward with its own playbook for the crypto industry. In early August, Bitwise CIO Matt Hougan noted that the crypto industry will thrive even if Senators fail to pass the CLARITY Act.
