Democrats won majorities in both the Senate and the House of Representatives in the November 3 midterm elections, making it less likely that the CLARITY Act will pass in its current form. The bill, which would set rules for US crypto markets, fell 10 votes short of advancing in the Republican-controlled Senate in September. Two disputes remain unresolved after the election. One concerns rewards for stablecoin holders. The other centers on ethics rules governing President Donald Trump’s family’s crypto investments.
Crypto bill fell 10 votes short in the Senate
The CLARITY Act aims to define which US regulator oversees each type of digital asset and what rules crypto companies must follow. The House passed the bill 294–134 on July 17, 2025, with 78 Democrats joining Republicans in support.
The Senate vote went differently. On September 15, 2026, senators voted on whether to take up the bill for debate. Only 50 voted in favor, short of the 60 needed to proceed. Four Republican senators joined Democrats in voting against the measure, and the bill never reached a final vote.
Mati Greenspan, founder of Quantum Economics, told CoinDesk that Republicans had been unable to clear that hurdle even when they held majorities in both chambers. He said the industry may have to start negotiations from scratch in the new Congress. Stefan Muehlbauer, head of US government affairs at blockchain security firm CertiK, also sees little chance of the current bill passing.
Stablecoin rewards divide banks and crypto exchanges
At the heart of the dispute is whether crypto exchanges should be able to offer rewards to customers who hold dollar-backed stablecoins. Banks argue that such payments could encourage savers to move some of their deposits to exchanges. Forte executive Anton Golub said Republicans failed to resolve the dispute between banks and crypto companies while they controlled Congress.
The industry spent heavily on the elections. According to figures Golub shared, crypto-linked political action committees spent roughly $170.5 million, including at least $125.5 million to support Republicans.
Golub said the Trump administration created a more favorable environment for crypto companies. The Trump family’s financial interests in the industry, however, helped fuel Democratic opposition to the bill. During Senate negotiations, Democrats called for stronger ethics provisions to prevent the president and his family from personally profiting from crypto activities while he holds office.
A revised bill could depend on Democratic support
Brent Fulfer, co-founder of venture capital firm TBV, pointed to the two congressional votes that preceded the election. In his view, the decisive setback for the current bill came in the Senate in September. Yet the support of 78 House Democrats suggests that a revised bill with stronger safeguards against conflicts of interest could draw votes from both parties.
The new Congress could also bring closer scrutiny of the industry. CertiK’s Muehlbauer expects Democrats to hold hearings on money laundering, cybersecurity and consumer protection. The Trump family’s crypto activities could also face congressional investigation.
Jason Fernandes, founder of AdLunam, sees room for crypto companies to work with Democrats. He said the industry could support rules aimed at curbing abuses, provided lawmakers target those responsible for misconduct without extending the same restrictions to every company in the market.
