Source: Fox News
Summary
A crypto regulatory package backed by President Donald Trump failed to pass in the Senate, marking a major setback for its supporters. The Clarity Act, which aimed to integrate cryptocurrency into financial regulations, faced opposition from both Democrats and some Republicans. Key concerns included ethics language targeting Trump’s crypto empire and foreign money laundering provisions. The bill’s failure allows the Senate to focus on other priorities, such as a college sports bill. Sen. Cynthia Lummis, the bill’s primary architect, said the effort is likely over.
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As expected, the matter has reached another stage.
Senators debated the Clarity Act, but it stalled.
Democrats and some Republicans rejected the bill.
Trump’s crypto empire was a central issue.
The process repeats, with no clear resolution.
Author: Evan Null
Key Players and Their Positions
Sen. Cynthia Lummis, R-Wyo., was the main supporter of the Clarity Act. She said the bill is over after failing to pass. Other Republicans, like Sen. John Cornyn, R-Texas, were undecided but concerned about the impact on banks and criminal use of crypto. Democrats, including Sen. Cory Booker, D-N.J., criticized the bill’s ethics language and its failure to address money laundering.
Sen. Andy Kim, D-N.J., wanted stronger measures against terrorist and cartel financing. He said he would support the bill only if it included such provisions. The Clarity Act was also criticized for not doing enough to curb Trump’s crypto empire, which saw a 250% increase in income between 2024 and 2025.
Some lawmakers, like Sen. John Cornyn, argued that the bill should be moved forward to allow for amendments. He said the Senate used to “legislate” by voting on a bill and then amending it. However, the bill’s failure means the Senate can now focus on other priorities, such as Sen. Ted Cruz’s college sports bill.
Senate Majority Leader John Thune, R-S.D., said the Senate would try to get a vote on the college sports bill. He said he hoped to get 60 votes, but he wasn’t sure yet. The failure of the Clarity Act shows the difficulty of passing major legislation in a divided Senate.
The Clarity Act was backed by the White House and the crypto industry, but it faced strong opposition. The bill’s failure highlights the challenges of regulating a fast-growing industry that has become a political flashpoint. With the midterm elections approaching, the Senate has limited time to pass major bills.
