Key facts
- The US Senate voted 49-50 against advancing the Digital Asset Market Clarity Act.
- Democratic objections to the bill cited concerns over President Trump's potential profits.
- The crypto industry spent over $300 million combined on the 2024 and 2026 elections.
- Spot Bitcoin ETFs experienced outflows of $450 million on September 15.
- Spot Ether ETFs saw outflows of $141.47 million on September 15.
The U.S. Senate's failure to advance a major cryptocurrency bill, the Digital Asset Market Clarity Act, marks a significant setback for the industry, highlighting the limits of its political influence in Washington. The bill was defeated in a 49-50 procedural vote, with four Republicans joining Democrats in opposition. Democrats cited concerns over President Donald Trump's personal crypto dealings and other policy issues, while the banking lobby also opposed certain provisions.
The defeat comes despite the crypto industry spending over $300 million combined on the 2024 and 2026 elections to promote crypto-friendly candidates and policy. Analysts suggest that the political landscape shifted, making it less risky for Democrats to oppose the bill, especially with mid-term elections approaching.
The Clarity Act aimed to provide a clearer regulatory framework for the $2 trillion cryptocurrency market. While many Democrats supported the bill's principles, they pushed for stricter safeguards regarding officeholders profiting from digital assets, a point of contention exacerbated by reports of Trump's significant income from his family's crypto ventures. The banking lobby also voiced concerns about provisions that could create competition for deposits.
Following the Senate's vote, spot Bitcoin ETFs experienced record outflows totaling $450 million on September 15, with spot Ether ETFs also seeing outflows of $141.47 million. The failure of the bill is widely seen as ending its chances of passage in 2026.