Crypto Legislation in Trouble? Experts React After CLARITY Act Vote

The CLARITY Act vote was meant to put the U.S. crypto industry on a path toward permanent federal rules. However, but the Senate voted 49-50 against advancing the legislation, falling far short of the 60 votes needed to clear the hurdle.

The immediate industry reaction was disappointment, but not panic. Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, former CFTC Chair J. Christopher Giancarlo and several leading crypto policy executives all reached variations of the same conclusion: Congress may have stalled, but crypto regulation has not.

Their disagreement is mostly on where the action will be next — another attempt at legislation, aggressive SEC and CFTC rulemaking or another long period of industry without permanent statutory protection.

What Did the Failed CLARITY Act Vote Change?

The failed CLARITY Act vote did not reject the legislation on final passage. The senators voted on cloture on the motion to proceed, which requires 60 votes.

The failure still matters because the congressional calendar is rapidly closing ahead of the November midterms. The bill was meant to establish a durable division of responsibility between the SEC and CFTC while creating federal rules for exchanges, digital assets, DeFi and other crypto market segments.