Cryptocurrency Bill Demise Schools Industry in Washington’s Ways

The cryptocurrency sector, a nascent industry with an accelerating Washington influence operation, just got a taste of an age-old lobbying gospel — it’s a lot easier to block a bill than to get one signed into law.

It got priority legislation, a regulatory structure bill known as the Clarity Act, through the House, only to see the measure falter in the Senate. Senators tanked it on a procedural vote Tuesday. Three Republicans joined Democrats in blocking the bill, with the Democratic opponents including Sen. Kirsten Gillibrand (D-N.Y.) who worked on the legislation for years with Sen. Cynthia Lummis (R-Wyo.).

After its Senate defeat, the crypto industry plans to focus on the midterm elections, along with bipartisan tax legislation in the House — but also will keep pushing for action on the Clarity Act. Others in the space say it’s time to move on to the sector’s Plan B: working on regulations with the Trump administration.

“Legislation takes a very long time,” said Summer Mersinger, CEO of the Blockchain Association and a former chief of staff to Senate Majority Leader John Thune (R-S.D.). “You’re always going to have setbacks. I don’t think it’s dead.”

Voters who care about crypto will head to the polls with the legislative defeat top of mind, one advocate predicted.