The crypto industry's central market-structure bill stalled in the U.S. Senate after a procedural vote fell short on September 15, 2026. The motion to advance the Digital Asset Market CLARITY Act received 49 votes in favor and 50 against, leaving supporters 11 votes short of the 60-vote cloture threshold. Republican Senators Jerry Moran, Susan Collins, Josh Hawley and Thom Tillis voted against the motion. Senator Tillis later changed his vote to preserve the possibility of reconsideration, but Democratic opposition remained a key obstacle. Democrats cited unresolved ethics safeguards, treatment of senior officials' cryptocurrency profits and concerns over decentralized finance provisions. Banking groups also warned that stablecoin yield provisions could draw deposits away from traditional banks.
Despite the legislative defeat, federal lobbying remained substantial. Bloomberg Government data showed Coinbase and several major crypto groups spent more than $4 million on federal lobbying during the third quarter, marking the sixth consecutive quarter above that level. Coinbase spent roughly $2.2 million during the first half of 2026, while Kraken spent close to $1 million. Broader first-half spending on market-structure advocacy exceeded $8 million. Some outside lobbying firms ended relationships with crypto clients in Q3, but related political spending through groups including Fairshake remained active ahead of the midterm elections.
Senator Cynthia Lummis renewed criticism of Senate Democrats on October 22, arguing they blocked tougher crypto penalties and investor protections they had previously requested. She said the CLARITY Act raises civil monetary penalties for digital asset violations and strengthens enforcement involving the Department of Justice. Lummis also highlighted provisions requiring digital commodity exchanges to submit audited annual financial statements to the CFTC and barring exchanges from creating their own tokens to satisfy regulatory capital requirements, referencing FTX-style failures. The bill would place digital commodity exchanges under CFTC oversight while retaining a role for the SEC in certain token transactions.
Democrats disputed the Republican account. Senator Ruben Gallego said Republicans rejected stronger restrictions related to President Donald Trump's cryptocurrency interests, while Senator Catherine Cortez Masto raised concerns about enforcement authority, prediction markets and ethics provisions. Seven Democratic senators later expressed interest in reviving negotiations, but no new cloture date had been scheduled as of October 23. Senator Tillis's motion to reconsider remains a procedural route for another vote, though any renewed attempt would still need 60 Senate votes. Meanwhile, the SEC and CFTC have continued developing cryptocurrency regulations within their existing authority.
