CLARITY Act: US Crypto Regulation Stalls After Trump Meeting

Efforts to advance the CLARITY Act, a bill designed to regulate the cryptocurrency market in the United States, have faced another setback. A high-stakes White House briefing between President Donald Trump and Senate Republicans concluded without producing a revised legislative text. This failure underscores deep inter-party disagreements over crypto ethics rules and executive oversight. The development leaves many players in the fast-moving crypto industry in limbo. Market uncertainty persists, and a quick resolution appears unlikely. For international players, in particular, such regulatory impasses are a constant challenge.

Numbers and facts

News of the continued delay immediately impacted decentralized prediction platforms. On Polymarket, the probability of the CLARITY Act passing into law in 2026 plummeted to a mere 32 percent. Prior to the meeting, senators had expressed optimism. Senator Bernie Moreno had stated that lawmakers were prepared to unveil the plan as soon as the president was fully briefed, suggesting the text would give journalists "a lot of reading to do." However, agreement is not in sight. The original source, gamblersconnect.com, cites this drop in Polymarket probabilities as a clear indicator of growing market skepticism. According to congress.gov, a similar bill, H.R.3633 – Digital Asset Market Clarity Act, was already passed in the House of Representatives in 2025, specifically on July 17, 2025, with 294 to 134 votes. Nonetheless, the Senate draft remains in the active drafting phase.

Background

The legislative deadlock is primarily due to a lack of consensus on robust accountability metrics, particularly concerning consumer protection and executive interests in the digital asset market. Senator Ruben Gallego, a prominent Democratic negotiator, openly critiqued the proposals presented by his Republican colleagues. He directly linked the legislative dispute to Trump's personal and commercial business investments within the digital asset market.

"At the end of the day, we don’t have strong ethics. I don’t care what the president says. You’re not going to have the Democratic votes." - Ruben Gallego, Democratic Senator

Gallego characterized the draft reviewed by the White House as "very weak." He emphasized that it expands presidential discretion while offering insufficient protection for retail consumers. A senior Democratic Senate aide confirmed to POLITICO that minority lawmakers had neither reviewed nor authorized the language taken to the White House briefing. This prevented Republicans from introducing the text as a unified, bipartisan bill. Senator Cynthia Lummis, a proponent of the CLARITY Act, pointed out on Platform X the bill's more than sixteen safeguards, including the application of BSA/AML regulations to cryptocurrencies and the ability to freeze funds. She countered criticism that the bill would create loopholes. Despite the visible impasse, some negotiators insist that a path to a regulatory framework remains viable. Senator Cory Booker highlighted that active dialogue continues behind closed doors. He reminded colleagues that bipartisan alignment is the only realistic avenue to securing final passage.

Why it matters for German players

German players operate in a completely different regulatory environment than their counterparts in the USA. German gambling regulation, embodied in the Glücksspielstaatsvertrag 2021 (GlüStV 2021), is clearly defined and enforced by the Joint Gambling Authority of the Federal States (GGL). The GGL whitelist lists all licensed online gambling providers who comply with strict rules. These include a deposit limit of 1,000 Euros per month and a stake limit of 1 Euro per spin for online slot machines. The cross-state self-exclusion system LUGAS is another instrument for player protection.

The complexity and stalemate in the USA show how difficult it is to find consensus on new technologies like cryptocurrencies. In Germany, the regulatory framework for online gambling, with its focus on player protection, is comparatively robust and established. While US players await clarity on crypto gambling and other digital assets, German players can be assured that the GGL maintains strict standards. Providers with a German license operate within the framework of GlüStV 2021, which ensures transparency and security. Casinos with MGA, Curacao, or UKGC licenses should be viewed critically by German players, as they are not subject to the strict domestic regulations.

What it means for GGL-licensed casinos

For GGL-licensed casinos, the debate surrounding cryptocurrencies in the USA has no direct impact on their operational business. The GlüStV 2021 provides a clear framework for the payment methods offered, which are generally restricted to traditional fiat currencies. Crypto payments are not envisioned for GGL casinos. The GGL's focus is on ensuring a regulated market with high player protection to combat money laundering and illegal gambling. GGL casinos must adhere to existing German laws, which include explicit regulations on deposits, withdrawals, and identity verification. Should cryptocurrencies be allowed as a payment method in gambling in Germany in the future, an adaptation of the GlüStV and a clear position from the GGL would be necessary. However, we are still far from that. Experiences from the USA show that such processes are politically highly complex and lengthy.