Senate fails to advance Clarity Act in blow to crypto industry ahead of 2026 midterms

The Senate on Tuesday failed to advance the Clarity Act, a major blow to the crypto industry as the legislation could become even more difficult to pass if Dems win back seats in the midterm elections.A procedural cloture vote on the bill got 50 votes for and 49 against, widely missing the 60 votes needed to clear the hurdle as three Republicans – Sens.Susan Collins of Maine, Josh Hawley of Missouri and Jerry Moran of Kansas – voted no.A version of the Clarity Act – or the Digital Asset Market Clarity Act – passed the House last year, but it stalled in the Senate for months as Democrats sought a more restrictive version of the bill that would, they said, block President Trump and others from profiting. The odds of the legislation ever passing into law are only growing slimmer as the November midterms approach.

If Democrats regain control of the House or Senate, it would almost certainly mean an even tougher battle ahead for the crypto bill.The 600-page Clarity Act was an attempt to create a universal regulatory framework for the crypto industry that included oversight of the industry by the SEC and CFTC, registration requirements and anti-money-laundering rules.Dems pushed back, arguing the legislation was too lenient and didn’t include enough protections to keep Trump and others from profiting off the industry, after the commander-in-chief made $1.4 billion from his crypto businesses last year.Nic Puckrin, founder of Coin Bureau, said it’s no surprise the Clarity Act failed to advance, saying it has become “too much of a political hot potato.” “This doesn’t really affect Bitcoin much, because it’s driven more by macro factors and institutional flows,” he told The Post.But he warned that the failure to advance the crypto legislation “could definitely put some projects on ice.”“Many altcoins and other crypto projects are now stuck in a sort of legal purgatory, with no clear regime establishing whether they are securities or commoditie...