Hawley and Moran joined Democrats to defeat Trump-backed crypto bill. Here's why

Updated September 15, 2026 at 4:05 PM CDT

It was meant to be a game changer for the cryptocurrency industry. Instead, a key piece of legislation championed by both crypto executives and President Trump suffered a stinging defeat in the U.S. Senate — and now faces steep hurdles to become law.

The Clarity Act — officially called the Digital Asset Market Clarity Act — has been at the top of the crypto sector's wish list for years. But on Tuesday, the bill failed to clear a key procedural hurdle following entrenched Democratic opposition.

The massive bill — which stretches over 600 pages — would have established the first regulations for the crypto sector in U.S. history.

But opponents saw it as the industry's attempt to encode into law a set of rules they saw as far too lenient on the industry, without enough safeguards.

A version of the bill already passed the House last year, but it has faced a long and torturous road in the Senate as opponents have fought tooth and nail. Now, it faces an uncertain future, as the crypto industry and its backers in the Senate must decide whether to try again at a later date.

Here are 5 key things to know about the Clarity Act — and why opponents are fighting hard to prevent it from ever being passed.