The US Senate rejected the CLARITY Act on September 15, 2026, with a 49-50 vote, failing to reach the required 60-vote threshold to proceed. The bill aimed to establish a regulatory framework for the cryptocurrency industry.
Disagreements centered on ethics provisions. Democrats demanded that officials with large crypto holdings divest completely, rejecting the Republican proposal for blind trusts. They also sought to extend restrictions to the children of officials and tighten rules on paid crypto promotions.
Concerns regarding enforcement mechanisms persisted, as Democrats argued that the proposed role for state attorneys general still left excessive authority within the federal administration. Additionally, debates continued over stablecoin reward regulations and anti-money laundering requirements.
Market reaction was negative, with Bitcoin falling over 5%, Ethereum dropping more than 6%, and XRP declining by roughly 12%. Shares of Coinbase and Circle fell by as much as 10% as traders reduced risk exposure.
The bill remains stalled, though a procedural move by Senator Thom Tillis allows for potential reconsideration. Future attempts could occur before the current session ends on December 18, 2026, or during the post-election period in November.
