CLARITY Act Fails to Pass, Facing Significant Hurdles for Near-Term Advancement

On September 16, the U.S. Senate held a key procedural vote on the Digital Asset Market Clarity Act (CLARITY Act) to determine whether to end debate and move the bill to formal consideration, with a 60-vote threshold. The vote ended at 50 in favor and 50 against, meaning the bill cannot enter formal Senate consideration in the near term. To advance, at least about 10 senators would need to switch to yes, or similar-scale new support would need to be secured after renegotiation; even if 60 votes are achieved in the future, the bill would still face procedural hurdles including amendments, a potential second cloture vote, and final passage.

Sponsor and Republican Senator Cynthia Lummis stated that the revised bill adds more ethical constraints, a state attorney general enforcement participation mechanism, authority to address stablecoin deposit outflows, and protections for developers, arguing these compromises facilitate bipartisan advancement, while warning that if the 60-vote threshold to even enter consideration cannot be cleared, subsequent negotiation space will narrow significantly. Democratic Senator Elizabeth Warren pointed out that the current text fails to adequately constrain conflicts of interest for the President and senior officials, calling for stricter ethics and consumer protections, and expressing concern over the Trump family's expansion of crypto businesses.

[BlockBeats]