CLARITY Act failed, Bitcoin didn’t

Armstrong Williams

The Senate’s rejection of the CLARITY Act was not simply another episode of Democrats opposing President Donald Trump or Republicans failing to maintain party unity. Nor was it a declaration that cryptocurrency has no future in the United States.

The bill was overtaken by a more fundamental dispute involving ethics, enforcement and public trust.

The procedural motion failed 49-50, well short of the 60 votes required to advance. Every Democrat who voted opposed it, joined by Republican Sens. Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis. Tillis voted no for the procedural purpose of preserving an opportunity to seek reconsideration. The outcome was bipartisan, but it was not an overwhelming repudiation of digital assets. It was the collapse of a legislative coalition.

That distinction matters because Bitcoin does not depend upon Congress for its existence, legitimacy or survival. It was trading before the CLARITY Act was written, continued trading while the bill was being negotiated, and will remain active after the vote. The legislation was intended to create a broader framework for determining how digital assets are classified, issued, traded and supervised.