Congress will return from the August recess with a crowded agenda and a rapidly shrinking legislative calendar. Government funding, crypto legislation, trade negotiations, regulatory proposals, and the Farm Bill still require action, but lawmakers now face an additional constraint: a midterm election that’s quickly reshaping political incentives on both sides of the aisle.

With only a handful of legislative weeks remaining before November, even routine policy debates could become more difficult to resolve. The closer Congress gets to Election Day, the harder it becomes to separate governing from campaigning, increasing the likelihood that some priorities move forward while others are pushed into a lame-duck session (the period between Election Day and the start of a new Congress) or beyond.

The Push for Crypto Rules Loses Steam

Senate Republican leaders scrapped plans for a floor vote on the crypto market’s Clarity Act before departing for the August recess, delaying the industry’s top legislative priority. The bill would establish a clearer regulatory framework for digital assets. However, the legislation is still caught in disputes over ethics provisions tied to Trump’s crypto interests, law enforcement concerns, and opposition from banks worried that crypto products could compete with traditional deposits.

What began in 2026 as a rare bipartisan effort in the House lost momentum in the Senate as banking groups and crypto advocates intensified efforts to shape the debate. The Financial Services Forum recently launched a $100 million political fund, while Fairshake (a cryptocurrency-funded super PAC) has spent heavily, backing candidates viewed as friendly to the sector.

As support for the bill weakened and several Republican senators raised concerns, Sen. Majority Leader John Thune (R-SD) opted not to bring it to the floor. The decision leaves lawmakers with a narrow window to act when Congress returns in September. With another recess in October, lawmakers would need to move quickly to revive the legislation this year.

Fairshake and its affiliated groups, including Protect Progress and Defend American Jobs, are reportedly sitting on nearly $200 million in available funds. That financial backing could give the group and its allies a prominent role in key House and Senate races ahead of November.

Quarterly Earnings Reports Come Under Scrutiny

The SEC is facing significant pushback over a proposal that would allow public companies to file earnings reports semi-annually rather than quarterly. The change would reduce or eliminate the need for quarterly Form 10-Q filings, which provide investors with regular updates on a company’s financial performance. In a record-setting response, the agency received roughly 221,000 public comments, with more than 99% opposing the change.

SEC Chairman Paul Atkins and business groups such as the US Chamber of Commerce argue that less frequent reporting could reduce compliance costs and encourage companies to focus on long-term growth rather than short-term results. Opponents, including major institutional investors and retail investors, counter that quarterly disclosures are essential for market transparency and informed valuation decisions.

Given that quarterly reporting has been standard practice since 1970 and is already deeply embedded in the reporting process for most large public companies, any shift away from a quarterly cadence may prove difficult to implement even if regulators move forward with the proposal.

Trade Policy’s Unfinished Business

Tariff Refunds Reach a Major Milestone

Following the Supreme Court’s February ruling that struck down the Trump administration’s IEEPA (International Emergency Economic Powers Act) tariffs, efforts to return the collected duties have reached an important milestone. According to an early August filing with the US Court of International Trade, Customs and Border Protection (CBP) had refunded $100 billion in tariffs and interest through July 31. That accounts for more than half of the estimated $166 billion in invalidly collected duties, while CBP’s portal has received nearly $129 billion in total claims.

While CBP continues processing claims for many importers, a key legal dispute remains over older entries that have already been finalized. Companies such as Amazon and Apple have already received significant refunds, but businesses with older claims may have to wait longer as a Department of Justice appeal continues to work its way through the courts. More than 60% of the money has been returned, but a substantial portion is still tied up in legal and administrative proceedings.

USMCA’s Future Remains Under Negotiation

During the July 1 review of the USMCA, Canada and Mexico formally backed a 16-year extension of the trade pact. The Trump administration declined to do the same, opting to preserve annual reviews as a negotiating tool. Although USMCA remains fully in force through 2036, the decision signals that Washington sees unresolved trade issues it would like to address before committing to a longer-term extension.

Those issues include automotive rules of origin, steel and aluminum tariffs, agricultural-market access with Mexico, and trade barriers affecting Canada. With the agreement still eligible for a 16-year extension at any time, the administration can continue negotiating while avoiding immediate disruption to North American trade.

September will likely be a pivotal month for several issues that have been deferred or left unresolved heading into the recess. While substantial policy differences remain, the greater obstacle may simply be time. With a crowded agenda, lawmakers will need to decide which fights are worth pursuing now and which are likely to spill into a lame-duck session.