After the Senate prevented the advancement of Crypto Clarity Act, the White House blamed the Democrats, accusing them of "putting partisan games above America's technological leadership."
However, concerns surrounding the crypto profits of U.S. President Donald Trump and the demands for stricter ethical regulations also played a significant role in the opposition votes.
The White House points to opposition from Democrats
On September 15th, the Senate rejected a motion to advance Clarity Act with a vote of 49 to 50. Since a minimum of 60 votes were required for the motion to pass, it was not successful.
After the voting concluded, the White House blamed Senate Democrats for the failure to advance the bill. A White House statement stated that Democrats put "political games above the best interests of American technology and innovation."
The White House encryption advisor, Patrick Witt, described this outcome as a “major disappointment.”
Witt also warned that this vote could increase the risk that future global financial standards will be shaped by "Brussels or Beijing, rather than Washington and New York."
Senator Cynthia Lummis, one of the main Republican negotiators, also defended the bill and pointed out the modifications made during the negotiation period.
She stated that the final version incorporated 126 amendments requested by the Democratic Party, including new ethical guidelines and adjustments related to decentralized finance.
"We included this content in the Clarity Act. The Democrats voted against it."
The chairman of the Senate Banking Committee, Tim Scott, also attributed the blame to the Democrats, stating that the motion failed to pass due to the opposition of Democratic senators.
The Democratic Party raises ethical concerns
At the same time, Democrats presented different reasons for their opposition. Senator Cory Booker stated that he would not support a piece of legislation if it did not adequately address concerns regarding Trump's interests in encryption.
Senator Adam Schiff also stated that there is a need for stronger and enforceable ethical rules, especially regarding the issuance, sponsorship, or endorsement of digital assets by elected officials.
Some Republicans also voted against it.
However, this bill did not fail solely due to the opposition of the Democrats. Four Republican senators, including Susan Collins, Lisa Murkowski, Mitch McConnell, and Thom Tillis, also voted against terminating the debate process.
Prior to this, traditional banks engaged in strong lobbying against some of the provisions, such as Article 404, which restricts stablecoin providers from offering returns similar to those of deposits to US customers.
What does this failed vote mean for the crypto industry?
The biggest impact is that the United States still does not have a unified federal framework to regulate the spot digital asset market.
Without Clarity Act, the Commodity Futures Trading Commission (CFTC) would not acquire the new powers proposed by this act and would be unable to establish a federal registration system for digital commodity exchanges, brokers, and traders.
Therefore, these companies still have to continue to face different remitter regulations in each state, rather than operating under a unified federal framework.
