Digital asset insiders are disappointed by today’s Senate vote on the CLARITY Act, which landed with a thud. The inability to advance crypto market infrastructure legislation is a significant loss for the industry, and most argue it is a loss for the United States. The vote in the Senate fell well short of the 60 needed to avoid a potential filibuster, but in the end no Democrats backed the bill, and several Republicans turned against their majority to vote it down.
The Crypto Council for Innovation (CCI) issued a statement on the event. CEO Ji Hun expressed optimism that the bill could be revisited within days if the two sides could reach a compromise. Hun said that the vote on the CLARITY Act was disappointing but added that it is not the end.
“Senator Thom Tillis preserved the right to reconsider Clarity this week, which allows another cloture vote within two days. [The Clarity Act] reflects years of bipartisan work and leadership across both chambers. It accomplishes the goals for a comprehensive framework to protect American consumers, innovation, national security, and global leadership. Today’s vote unfortunately sets that back and presents risks for the 67 million (and growing) Americans who use, hold, or invest in digital assets. CCI thanks the members and staff on both sides who worked tirelessly to advance this bill to this point. That foundation will remain, as will the need for clear rules governing our industry,” stated Hun.
He added that his group would continue working with regulators, including the OCC, CFTC, and SEC, to establish clear rules so digital asset innovators can build domestically, and consumers are protected.
“This critical work is already happening, and CCI looks forward to much more from the agencies. CCI remains committed to working towards a durable regulatory framework that serves Americans and promotes U.S. leadership.”
Senator Cynthia Lummis, one of the biggest supporters of digital asset innovation in the Senate, was more blunt. She said the vote proved Senate Democrats were never serious about ensuring American leadership and protecting consumers.
“I sat at the table with Senate Democrats working in good faith to get this done while they played games. For over a year, they presented demands, and the second we met them, they made new demands and moved the goalposts. Today they voted against real limitations on politicians’ personal crypto investments. They voted against protecting American consumers from the scammers and fraudsters this bill would have shut down. They voted against American leadership and handed China and every one of our foreign competitors exactly what they wanted. Democrats chose politics over the American people—again. That’s not leadership on their part, that’s surrender to their radical, socialist base. The once-proud Democratic Party is anti-consumer and pro-illicit finance, anti-ethics, anti-free enterprise, anti-worker, anti-livable wage jobs, and pro-socialism. The Democrats are now anti-American. Sad!”
Senator Tillis, who switched his vote from a Yea to a Nay at the last second, also said the battle was not over, explaining that the procedural motion allows the Senate to keep working toward a positive outcome.
As the midterms near, Congress will focus more attention on elections. The CLARITY Act not passing is a win for the Democrats, as it denies a White House victory and a chance for Republicans to show they are delivering for the country. Hopefully, in the next few days, we will better understand what the White House and Congressional leadership expect to protect and enable digital asset innovation.