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Crypto Bill Fails to Launch as Dems, Republicans Unite to Block It
Confirmed
In Short: A crypto regulatory bill backed by President Trump failed to advance in the Senate, facing opposition from both parties.
The Clarity Act, a comprehensive cryptocurrency bill aimed at establishing federal regulations for the industry, failed to move forward in the Senate. Despite support from the White House and major crypto players, the bill fell short of the required 60 votes, with a 49-50 vote against a motion to proceed. The failure comes as the Senate faces a packed agenda ahead of the midterm elections.
Democrats and Republicans alike expressed concerns about the bill, with several Democrats opposing it due to ethics provisions that would slow down the Trump family's crypto investments. 'Let's make sure that we do not pass a crypto bill that will let Donald Trump continue to rake in billions of dollars in crypto profits,' said Massachusetts Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee.
Republicans, including Sens. Cynthia Lummis and Josh Hawley, also voted against the bill. Lummis, the bill's primary architect, said, 'I think we're done. It's over,' while Hawley expressed concerns about how bringing crypto into the fold could affect deposit yields at community banks and guardrails on the currency being 'diverted for criminal purposes.
The White House now plans to push its crypto agenda through federal agencies instead, with adviser Patrick Witt warning that the failure raises the risk that future global crypto standards are set in Brussels or Beijing rather than Washington. Susan Collins, one of only four Republicans to vote no, broke with the President and her party to block the measure, joining all Senate Democrats in the procedural vote.
The bill, officially called the Digital Asset Market Clarity Act, would have established clearer rules for digital assets and determined whether particular tokens fall under securities or commodities laws. Despite its importance to the crypto sector, the bill's failure highlights the challenges in crafting legislation that can gain bipartisan support in the current political climate.
What's confirmed
- The Clarity Act, a comprehensive cryptocurrency bill aimed at establishing federal regulations for the industry, failed to move forward in the Senate. Despite support from the White House and major crypto players, the bill fell short of the required 60 votes, with a 49-50 vote against a motion to proceed. The failure comes as the Senate faces a packed agenda ahead of the midterm elections.
- Democrats and Republicans alike expressed concerns about the bill, with several Democrats opposing it due to ethics provisions that would slow down the Trump family's crypto investments. 'Let's make sure that we do not pass a crypto bill that will let Donald Trump continue to rake in billions of dollars in crypto profits,' said Massachusetts Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee.
- Republicans, including Sens. Cynthia Lummis and Josh Hawley, also voted against the bill. Lummis, the bill's primary architect, said, 'I think we're done. It's over,' while Hawley expressed concerns about how bringing crypto into the fold could affect deposit yields at community banks and guardrails on the currency being 'diverted for criminal purposes.
- The White House now plans to push its crypto agenda through federal agencies instead, with adviser Patrick Witt warning that the failure raises the risk that future global crypto standards are set in Brussels or Beijing rather than Washington. Susan Collins, one of only four Republicans to vote no, broke with the President and her party to block the measure, joining all Senate Democrats in the procedural vote.
- The bill, officially called the Digital Asset Market Clarity Act, would have established clearer rules for digital assets and determined whether particular tokens fall under securities or commodities laws. Despite its importance to the crypto sector, the bill's failure highlights the challenges in crafting legislation that can gain bipartisan support in the current political climate.
What's still developing
- Still, some lawmakers argued they should at least move forward with the bill to tweak it as needed.
- A colossal crypto regulatory package backed by President Donald Trump stumbled in the Senate, and another shot is unlikely.
- And with little time left on the Senate’s calendar and major bills piling up ahead of the midterm elections, the bill’s biggest backers believed that the Clarity Act might end up back on the shelf.
- The issues with the package were many and varying among Democrats and Republicans.
- Approximately a dozen Democrats were considered potential yes votes, but ultimately rejected the legislation after the two sides failed to reach an agreement on ethics rules.
- In comments to Punchbowl News on Monday, she called the bill a “moving target” and indicated concerns about community bank deposits.
- Trump reported more than $1.4 billion in crypto business revenue last year, including over $500 million tied to World Liberty Financial, a firm his family controls.
- Trump agreed to concessions as the vote neared, including new limits on federal officials issuing digital assets like the meme coins he and first lady Melania Trump launched before his second term began.