U.S. crypto sector spending push fails to secure Senate vote on Clarity Act

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Crypto sector fails Clarity Act vote

Highlights

The Senate delayed a vote on the Clarity Act until September, prolonging uncertainty over a federal digital assets framework and raising enforcement risks.
Democrats push for ethics restrictions tied to President Trump’s crypto holdings after he and his trust reportedly earned over $1 billion from crypto companies in 2025.
FT analysis shows the U.S. crypto sector spent over $185 million on the 2025–2026 election cycle and more than $40 million on lobbying, intensifying its policy influence.

Senate delay extends fight over crypto rules

As first reported by Financial Times, senators are expected to depart without taking up the Clarity Act, despite repeated pledges that the chamber would vote on the legislation. Senate Republican leader John Thune says a vote is now expected in September, setting up another round of lobbying by crypto companies and banks.

The bill is a top priority for the crypto industry because it would create a federal framework for digital assets and could reduce the risk of tougher enforcement in a future administration. Joshua Riezman, chief legal and strategy officer at crypto market maker GSR, says failure of the measure raises the risk of a return to the kind of crackdown associated with former U.S. regulator Gary Gensler.

Political divisions remain significant. Some Republican senators oppose the measure because banks worry depositors could shift funds into crypto accounts offering higher yields or rewards, while Democrats are using the legislation to press for tougher ethics limits on Trump’s crypto interests.

Trump ties and donor money sharpen industry stakes

Democrats are pushing for provisions that would bar federal officials, including the president, from issuing or promoting digital assets for compensation while in office. Senators Thom Tillis and Ruben Gallego are also seeking a deal that would require public officials such as Trump to divest crypto holdings while allowing them to defer capital gains tax on those transactions.

Trump says lawmakers want rules that single him out and says he does not object to placing assets in a blind trust, while adding that his children run the businesses. The scrutiny reflects the scale of the president’s crypto exposure, with the article saying he earned more than $1 billion from crypto companies in 2025 and that his trust also holds more than $1 billion in shares of Trump Media & Technology Group, which has substantial bitcoin holdings.

The broader industry is becoming one of Washington’s best-funded political forces. An FT analysis of Federal Election Commission filings says the sector spends more than $185 million between January 2025 and June 2026 in the election cycle, alongside more than $40 million on lobbying, while groups and donors including Fairshake, Ripple Labs, Coinbase, Crypto.com and the Winklevoss founders expand their political spending and congressional outreach.

Our earlier coverage of the Clarity Act focused on why supporters frame the bill as a national security and competitiveness issue, arguing that unclear federal rules push crypto activity offshore and weaken U.S. oversight. We noted that the proposal would bring exchanges, brokers, and dealers under Bank Secrecy Act obligations and expand Treasury authority, with backers saying it would strengthen sanctions and anti-money-laundering enforcement while helping the U.S. shape global payment standards.

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