The US Senate is experiencing delays in passing the CLARITY Act, a significant legislative framework aimed at regulating the cryptocurrency industry. Initially introduced in May 2025, the bill swiftly passed the House of Representatives but has encountered obstacles in the Senate due to partisan disagreements and industry concerns. Key issues include the regulation of stablecoin yields and the designation of the primary regulatory agency, with Democrats and Republicans at odds over ethics provisions and bailout prohibitions. The crypto industry, including major players like Coinbase, has expressed dissatisfaction with certain provisions, particularly those affecting stablecoin yields. The ongoing discussions have led to nearly $1 billion in outflows from the crypto market, as stakeholders continue to negotiate terms. High-level talks at the White House and in Congress are ongoing, with both political parties eager to finalize the legislation before the 2026 midterm elections.