TLDR
- The Senate failed to advance the Clarity Act in a procedural vote on Tuesday.
- The bill needed 60 votes to move forward and did not get them.
- Stand With Crypto, a Coinbase-backed group, will add the vote to its lawmaker scorecards.
- The group says it represents 67 million crypto-owning Americans and 3 million grassroots advocates.
- Banking groups had pushed for limits on stablecoin rewards ahead of the vote.
The Senate failed to advance the Clarity Act on Tuesday after a procedural vote came up short. The bill needed 60 votes to move toward full consideration and did not reach that number.
Stand With Crypto, an advocacy group backed by Coinbase, responded quickly. The group said it would add the vote to its public scorecards, which track how lawmakers vote on crypto issues.
Executive director Mason Lynaugh called the outcome a failure of leadership. He said 67 million crypto-owning Americans have waited years for clear rules on digital assets.
What the Clarity Act Would Do
The Clarity Act would set federal rules for digital assets. It would split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Supporters say the bill would give companies and investors clear guidelines. Without it, crypto firms operate under rules that are often unclear or disputed.
The setback came after last-minute talks over several issues. These included ethics restrictions, protections for software developers, and oversight of crypto trading businesses.
Democrats submitted a counteroffer on Monday. This came after Republicans released revised legislation on Sunday, leaving both sides apart heading into the vote.
Banking Groups Pushed Back
Banking groups raised separate concerns about the bill. They sought tighter limits on stablecoin rewards before the vote took place.
Their argument was that stablecoin payments resembling interest could pull deposits away from banks. That could reduce the amount of lending banks are able to do.
Stablecoins are digital tokens usually pegged to the value of the dollar. They are a central piece of the broader crypto regulation debate.
Stand With Crypto said its supporters contacted Congress nearly 50,000 times in August. The group organized local events and placed opinion pieces in newspapers during that period.
The campaign focused on senators in their home states during the congressional recess. Community bankers ran their own lobbying push during the same window.
Lynaugh said the Clarity Act remains the top priority for the group’s three million grassroots advocates. He said the group will keep mobilizing supporters until the bill passes.
The group also pointed to its past endorsements of House candidates. It is preparing similar efforts ahead of the November midterms.
Lynaugh said supporters had already helped elect a Congress more open to crypto policy. He said lawmakers would now be judged on whether they deliver results.
Stand With Crypto said Tuesday’s vote showed clearly which senators support the crypto community and which do not. The group said its advocates would remember the vote when they go to the polls in November.
