Overview
- A cloture vote to begin Senate debate on the CLARITY Act failed 49–50 on Tuesday, Sept. 15, preventing the chamber from taking up the bill.
- The bill collapsed after Democrats pressed for stronger ethics limits tied to President Trump's crypto interests and banking groups warned that yield-bearing stablecoin products could drain community bank deposits.
- Under the proposed law, the Commodity Futures Trading Commission would get primary oversight of many digital commodities while the SEC would keep authority over assets treated as securities, and the text included developer protections and stablecoin rules.
- Markets reacted quickly as crypto stocks and major tokens fell, and with only weeks of legislative days before the midterms the bill is unlikely to be revived this session.
- Federal agencies, led by the CFTC, have said they will pursue rulemaking to fill gaps in the absence of legislation, a path that can be changed by future administrations and court challenges.