CLARITY Act Stalls in Senate as Crypto CEOs Slam Vote and Lawmakers Defend Opposition

The US Senate yesterday failed to proceed with consideration of the CLARITY Act, marking another blow for the prospect of a legislative framework for digital assets at the federal level. Senators voted 49 to 50, with the motion coming up short of the three-fifths majority needed to invoke cloture (to overcome an objection to) the motion to proceed.

Again, the four Republicans joined the Democrats, and again, the possible second consideration was left open by Senator Thom Tillis converting his vote.

Industry leaders publicly pushed back against the decision, with Coinbase CEO Brian Armstrong disappointed but confident that regulatory clarity could still be achieved through the Securities and Exchange Commission and Commodity Futures Trading Commission under their existing authority.

He further said that digital assets will continue developing regardless of congressional action, while also urging regulators to provide clarity.

Galaxy Digital CEO Mike Novogratz said that a bipartisan agreement had become ensnared in politics, but believed that the SEC or the CFTC would likely be the most immediate regulatory authority with jurisdiction.

Ripple CEO Brad Garlinghouse called the result painful after the industry’s lobbying for legislative action, saying the vote had been an opportunity to strengthen US competitiveness and consumer protections.