The Big Picture: More than four years after Russia's full-scale invasion, the war in Ukraine remains at a stalemate in many areas, with Russia continuing large-scale attacks and Ukraine pressuring Russia with successful drone attacks on key supply lines and manufacturing facilities while seeking additional military support from Western allies. During President Volodymyr Zelensky's July visit to Washington, Senators from both parties reaffirmed support for increasing pressure on Russia, even as questions remain about the future of U.S. assistance.
Support in Congress: While bipartisan support remains strong for imposing tougher sanctions on Russia, the Pentagon has informed lawmakers that delivery of previously approved U.S. aid will take longer than expected, into fiscal year 2029. The recent death of Sen. Lindsey Graham, one of Ukraine's strongest Republican advocates and a key bridge to President Trump, also removes a major voice in maintaining GOP support for Kyiv.
Why It Matters: While there remains bipartisan support for pressuring Moscow, U.S. aid commitments remain uncertain. America's role in the conflict could have broader implications for global energy markets and geopolitical stability given the Russian oil market and continued tensions in the Middle East.
What’s Next: The Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 with strong, bipartisan support before the August break. The bipartisan bill would expand both countries’ sanctions and allow tariffs on major buyers of Russian energy. The bill will need to pass the House when it returns in September, and it’s not clear whether that chamber will have the motivation to act.
The Big Picture: The Senate did not vote on the CLARITY Act before the August break, delaying action on legislation that would create the first comprehensive federal framework for regulating digital assets like cryptocurrencies and stablecoins.
What the Bill Would Do: The legislation would establish clearer rules for when digital assets are regulated as securities or commodities, helping determine whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) oversees them. Supporters say the bill would provide greater regulatory certainty for investors, financial institutions, and crypto companies while establishing clearer rules for trading and custody of digital assets.
The Debate: While lawmakers from both parties generally agree that clearer rules are needed, they remain divided over ethics, anti-money laundering and transparency requirements, along with an enforcement provision. Democrats are seeking stronger safeguards to address potential conflicts of interest involving federal officials with crypto holdings and want state attorneys general to play a role in enforcement. Republicans argue those matters should remain under the Department of Justice and have opposed expanding enforcement authority.
Why It Matters: The delay means the crypto industry will continue operating under a patchwork of existing regulations while Congress debates a long-term framework. Although SEC Chair Paul Atkins has indicated the agency could pursue some regulatory changes on its own, agency rulemaking can be more easily changed by future administrations than legislation enacted by Congress.