Bipartisan Crypto Bill Likely to Fail as Senate Returns

The Senate is considering a bipartisan cryptocurrency regulatory measure known as the CLARITY Act. The legislation pairs market-overseeing rules with an ethics component that would govern the president and his family’s involvement in crypto-related activities—a demand championed by Democratic lawmakers. The bill has moved forward with bipartisan sponsorship but has stalled on the ethics language, according to two Democratic aides familiar with the negotiations.

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Republican senators expressed doubt about the bill’s prospects. Sen. Mike Rounds (R-SD) warned that the effort “does not look good right now,” while Sen. Thom Tillis (R-NC) warned that without White House interest in bridging the ethics gap, the measure will fail.

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Industry observers note that a failed vote could prompt crypto firms to increase spending in upcoming Senate and House races, though Sen. Roger Marshall (R-KS) downplayed the bill’s political salience, saying he has heard no constituent pressure on the issue.

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• “Does not look good right now,” — Sen. Mike Rounds

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• “There’s nothing I can do with the crypto bill. Haven’t heard a peep about it. Nobody back home is asking about it,” — Sen. Roger Marshall

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Senators are set to reconvene next week, at which point a vote on the CLARITY Act is expected. If the bill does not pass, stakeholders anticipate heightened lobbying and campaign contributions aimed at influencing future crypto-related legislation.

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