The Digital Asset Market CLARITY Act stalled after a 49-50 Senate vote on Sept. 15, leaving a key crypto regulatory framework in limbo and drawing criticism from both sides of the aisle. White House crypto adviser Patrick Witt defended President Donald Trump’s ethics terms, saying the president accepted significant restrictions on his crypto interests during negotiations, including possible divestment or placing holdings in a blind trust.
Witt said Democrats focused heavily on the president’s financial interests, making Trump’s crypto holdings a central issue in the legislation. Banking groups separately raised concerns about stablecoin provisions. Senator Cynthia Lummis has intensified efforts to pass the act, arguing it would establish federal consumer protections, especially for seniors using crypto ATMs, and warning that failure could leave vulnerable populations exposed to scams and let international competitors lead digital finance rulemaking.
The bill gained bipartisan support but remains blocked. Market participants view the outcome as pivotal for regulatory clarity affecting digital asset exchanges, crypto ATM operators, and broader investor sentiment.
