BitGo CEO Mike Belshe Warns US Crypto Is at Risk After CLARITY Act Failure

Belshe warns that market structure risk looms over the US cryptocurrency market, as crypto companies offer exchanges, brokerage, and custody services in a single platform, increasing counterparty risk and creating points of failure.

The CLARITY Act’s failure in the Senate has left many questions about the future regulation of the US crypto market. As the industry prepares for the 2027 deadline, experts are concerned that the current framework leaves the market vulnerable to structural risks.

Related: Crypto Tax Bill Just Changed: What the New US Rules Could Mean for Bitcoin, Stablecoins and Staking

What Happened to the CLARITY Act

The CLARITY Act failed to progress in the Senate on Sept. 15, 2026, after a vote on a motion to invoke cloture for H.R. 3633. The measure got 49 votes in favor and 50 votes against the cloture motion, according to the vote tally. The outcome was well below the 60-vote threshold needed to bring the act to the floor.

Why Did the CLARITY Act Fail in the Senate?

Senator Republicans, Democrats, and others could not resolve the various disagreements over the contents of the measure. Ethics-related issues, which were a point of contention between Democrats and Republicans, were complicated further by debates over stablecoin rewards and bank regulation. A number of revisions were suggested and then rejected, but not enough bipartisan agreement was reached for the bill.