The Clarity Act, a broad cryptocurrency market structure bill, collapsed in the Senate when a procedural vote fell far short of the 60 votes needed. The bill was a top priority for the crypto lobby, which had poured hundreds of millions of dollars into the campaigns of pro-crypto politicians and spent at least $8 million on lobbying. Its failure is a relief to opponents who argued it would have created a custom regulatory regime exempting crypto from meaningful oversight.
The vote exposed fractures in both parties. No Democrat voted for cloture, including longtime crypto advocate Kirsten Gillibrand. Republicans Josh Hawley and Jerry Moran opposed it over concerns that inadequate language around stablecoin rewards could cause deposit flight from community banks, hurting agricultural lending. Susan Collins also broke with her party. Democrats had made a last-minute counteroffer with stricter ethics provisions, but Republicans rejected it.
The collapse is significant because legislation is more durable than executive actions. The source notes that Trump has already dismantled the agencies that should police the sector, but those changes can be reversed when he leaves office. A law would have locked in deregulation permanently. With the bill dead, future rebuilding efforts won't have to contend with additional bad legislation blocking the way.