Progress on the Digital Asset Market Clarity Act in the U.S. Senate has hit a roadblock this week. A Democratic senator involved in the bipartisan negotiations stated that the latest framework proposed by Republicans has not yet been approved. With only a few weeks remaining before Congress's August recess, the timeline for advancing the bill as planned is becoming increasingly tight.

It is understood that Republican senators were originally scheduled to brief the President on the Clarity Act negotiation progress on Thursday. This meeting could influence how Congress addresses the significant conflicts of interest and ethics concerns related to the President's extensive cryptocurrency business interests, which is a major point of contention between the two parties.

Democratic Senator Adam Schiff, involved in the talks, stated that the current bill text still requires "substantial changes" to gain Democratic support. He noted that while differences have been narrowed on most provisions, there has recently been a "step back" from the White House on ethics-related issues, overturning parts that Democrats previously believed were agreed upon.

Another key Democratic negotiator, Senator Ruben Gallego of Arizona, also indicated that Democrats have not approved any new version of the bill revised under Republican leadership, despite Republicans stating a new draft would be released soon.

Republican lead negotiator Senator Cynthia Lummis of Wyoming stated that talks are continuing on a bipartisan basis with substantive progress being made.

Beyond ethics issues, Democrats are also pushing for stronger anti-money laundering and measures against illicit financial activities to prevent the use of crypto assets for illegal fund flows.

Furthermore, different versions of the bill proposed separately by the Senate Banking Committee and the Senate Agriculture Committee still require further reconciliation. Senate Agriculture Committee Chairman John Boozman said coordination between the two bills is "99.9%" complete.

Republican Senator Bernie Moreno emphasized that bipartisan negotiations on this bill have been ongoing for over a year, with significant time and effort invested, and expressed hope to bridge the remaining gaps soon.

Democratic Senator Catherine Cortez Masto, leading negotiations on anti-illicit finance provisions, stated that discussions are still being conducted "in good faith."

However, several lawmakers are concerned that even if a new bill version is released soon, the Senate may struggle to complete its review before the August 7th recess. Senate Banking Committee member John Kennedy bluntly stated, "You can't pass a bill if you don't have a bill." He pointed out that even after a new draft is released, many senators not involved in earlier discussions will have numerous questions and may request a delay in voting, a process that often takes weeks, for which Congress currently lacks sufficient time.

Analysts note that the Clarity Act's supporters also have a limited vote margin. The market widely views the recent vote results on the Genius Act as a key reference point. The Genius Act, which primarily established a regulatory framework for stablecoins, passed the Senate last year with 68 votes in favor and 30 against, with 18 Democratic senators voting in favor and only two Republicans opposing.

In comparison, the Clarity Act has a broader regulatory scope, attempting to establish a comprehensive framework for digital assets beyond just stablecoins, and thus has slightly less support than the Genius Act.

Simultaneously, some Democratic senators who previously supported the Genius Act have now expressed reservations about the Clarity Act. Among them, Senators Schiff, Gallego, and Maryland Democrat Angela Alsobrooks have all stated that related concerns have not been fully addressed.

Additionally, Democratic Senator Raphael Warnock believes that the President and his family's recent business activities in the cryptocurrency sector have complicated the legislative discussion, making bipartisan consensus more difficult.

With an estimated three legislative weeks left before the summer recess, Clarity Act supporters are intensifying negotiations in hopes of completing the legislative process before the break.

At Friday's market close, Bitcoin saw a slight increase, hovering around $64,000. Most Bitcoin-related stocks declined. MicroStrategy Inc (NASDAQ: MSTR) defied the trend, closing up 0.87%. Coinbase Global Inc (NASDAQ: COIN) closed down 2%. Circle Internet Financial Ltd (CRYPTO: CRCL) closed down 0.3%. Robinhood Markets Inc (NASDAQ: HOOD) fell 5.72%.