Senate blocks Clarity Act as vote fails 50-49
The Senate rejected the Clarity Act on Tuesday, with a 50-49 vote against advancing the cryptocurrency regulation bill. The bill would have required 60 votes to pass, leaving regulators to shape crypto policy without new legislation.
The legislation would have barred crypto firms from offering stablecoin rewards deemed economically equivalent to interest-bearing bank deposits, a provision negotiated by Senators Tillis and Angela Alsobrooks. It also included a temporary measure allowing the Treasury secretary to limit those rewards if community banks experienced deposit flight, expiring after 18 months. Opposition cited concerns over former President Trump’s $1.4 billion crypto income and fears that the bill’s ethics loopholes could let officials profit from digital‑asset rules. The legislation would have let state attorneys general prohibit public officials from issuing, sponsoring or holding significant interests in digital assets, with an exemption for Trump’s sons who run his family’s crypto venture.
“While [regulators] can make rules, those are less stable and permanent than legislation,” Austin Campbell, adjunct professor at New York University said.
The House passed a version of the Clarity Act last year, but the bill stalled in the Senate after months of negotiation over stablecoin yield and ethics provisions. Democratic lawmakers and state attorneys general warned the legislation would weaken their ability to combat crypto fraud, while Republicans introduced updated ethics rules aimed at restricting public officials’ crypto holdings. With Congress set to adjourn in early October and not return until after the November midterms, the bill’s prospects for revival appear slim.
What we know
The measure failed Tuesday, 50-49.
The bill would have needed 60 votes to pass.
More recently, concerns shifted toward President Donald Trump, who reported $1.4 billion in income from his family’s crypto businesses last year.
That prospect is unlikely, however, as senators are scheduled to leave Washington in early October and not return until after November’s midterm election, which may rebalance power in both houses of Congress.
That clause would have expired after 18 months.