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Invest Widely confirmed17 publishers 2 min read Published Updated

Retiring senators Lummis and Tillis leave crypto's Clarity Act to the next Congress

Crypto's 635-page Clarity Act stalled in the Senate with no realistic path back before year-end, Cato's Ryan Chan-Wei wrote. He blames an ethics dispute over conflicts at the highest levels of government, and that dispute will meet whatever bill the next Congress writes.

The Investor · Invest desk

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What happened

  • Cynthia Lummis, who chairs Senate Banking's digital-assets subcommittee, is retiring, as is Thom Tillis, who helped broker the stablecoin-rewards compromise that got the bill out of committee.
  • Goldman Sachs and BlackRock endorsed the bill alongside the crypto industry, in what Chan-Wei called a uniquely broad coalition.
  • Federal efforts date to the Token Taxonomy Act of 2018 and have faltered across four Congresses, though Chan-Wei says none came as close as this one.
  • The European Union, the United Kingdom, Japan and Singapore have each set a regulatory perimeter for crypto, while the US has none written into law, according to Chan-Wei.

Why it matters

  • What it limits constraint Until a successor passes, no federal statute decides which legal category a token falls into, how trading firms get licensed, or whether the SEC or the CFTC supervises them.
  • What it costs cost By Chan-Wei's logic, institutional capital that waits for written rules keeps waiting through at least year-end, and that cost falls on the firms seeking it.
  • Who has to decide decision Whoever sponsors a successor bill has to re-strike the stablecoin-rewards deal or negotiate a new one, because the senator who brokered it leaves when the new Congress begins.

Ryan Chan-Wei, a research fellow at the Cato Institute's Center for Monetary and Financial Alternatives [11], wanted the bill passed. His column also makes two claims that pull against each other. "The fundamental questions concerning market structure had largely been resolved," he wrote [13]. He also wrote that "what ultimately held the bill up was ethics, specifically the risk of conflicts of interest at the highest levels of government" [3].

His case for a reset is about people. The senators who quarterbacked the bill will not be on the ballot again, so progress starts over when the new Congress is sworn in, he wrote [6]. Losing the people who brokered a committee deal is a real cost. By his own description, though, the conflict-of-interest risk sits at the highest levels of government [3], and a new Senate roster does not change who sits there.

The next Congress has three options. The first is to reintroduce, quickly, a text whose substance Chan-Wei calls largely settled. The second is to deal with ethics first, in a bill of its own. Chan-Wei wrote that "it was a mistake to sacrifice the Clarity Act on the altar of ethics, because other legislative avenues for addressing such concerns would have stayed open even if the bill had passed" [14]. By the same logic, a standalone conflicts measure could clear the way for a successor. The third is a rerun, with new sponsors meeting the old objection.

I think the rerun is the likeliest. It is the only path that works with the ethics dispute still open, and Chan-Wei names that dispute as what stopped the bill. The counter-case is his own. If market structure really was settled, a new sponsor inherits 635 pages of finished text [4] and the delay is mostly a matter of the calendar. The rerun view would be wrong if a standalone ethics bill moved early in the new Congress, or if a successor cleared committee with conflict rules attached.

For anyone putting money into US crypto businesses, the date to plan around is the start of the new Congress, since Chan-Wei sees no realistic path to reviving the bill before the end of the year [1]. He did not put a date on a restart. The account of the bill's fate comes from a single opinion column by one of its advocates [11].

What to watch

  • Who succeeds Lummis at the head of Senate Banking's digital-assets subcommittee, and whether that senator reintroduces the Clarity Act text largely unchanged.
  • Whether a standalone conflict-of-interest bill on crypto moves early in the next Congress, clearing the obstacle Chan-Wei says stopped this one.
  • Whether Goldman Sachs, BlackRock and the crypto industry back a successor as written or reopen the stablecoin-rewards compromise.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence70
Adoption18
Hype gap+15
Incentives65
Confidence62

Perspective Coverage

17 publishers
Builder
Builder 16%
Operator
Operator 41%
Investor
Investor 43%
Why these scores

Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    With the midterms around the corner, there is no realistic path to reviving the Clarity Act before the end of the year.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  2. [2]

    The Senate recently failed to advance the Digital Asset Market Clarity Act, also known as the Clarity Act.

    Reported Supported Source: Ryan Chan-Wei, Cato Institute, opinion column in CoinDeskView cited source
  3. [3]

    "what ultimately held the bill up was ethics, specifically the risk of conflicts of interest at the highest levels of government"

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  4. [4]

    The Clarity Act ran to 635 pages.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  5. [5]

    The Clarity Act sought to establish a market-structure framework: the rulebook that sorts crypto tokens into legal categories, licenses the firms trading them, and determines how supervisory authority is divided between the SEC and the CFTC.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  6. [6]

    Progress will effectively reset when the new Congress is sworn in, because key senators who quarterbacked the bill will not be on the ballot again.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  7. [7]

    Many developed economies, including the European Union, the United Kingdom, Japan and Singapore, have established a defined regulatory perimeter for crypto; the US has none written into law.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  8. [8]

    Cynthia Lummis (R-WY), who chairs Senate Banking's Subcommittee on Digital Assets, is retiring, and so is Thom Tillis (R-NC), who helped broker the bipartisan compromise on stablecoin rewards that cleared the Clarity Act's path out of committee.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  9. [9]

    Legislative efforts date back to the Token Taxonomy Act of 2018, and successive attempts across four Congresses have all faltered, though none came as close as the Clarity Act.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  10. [10]

    Goldman Sachs and BlackRock endorsed the Clarity Act alongside the crypto industry, part of what Chan-Wei called a uniquely broad coalition.

    Reported Supported Source: Ryan Chan-Wei, opinion columnView cited source
  11. [11]

    Ryan Chan-Wei is a research fellow at the Cato Institute's Center for Monetary and Financial Alternatives, and wrote the column arguing the Clarity Act should have passed.

    Reported Supported Source: CoinDesk author noteView cited source
  12. [12]

    "regulated institutions naturally hesitate to commit capital while the rules remain unwritten"

    Reported Contested Source: Ryan Chan-Wei, opinion columnView cited source
  13. [13]

    "The fundamental questions concerning market structure had largely been resolved"

    Reported Contested Source: Ryan Chan-Wei, opinion columnView cited source
  14. [14]

    "it was a mistake to sacrifice the Clarity Act on the altar of ethics, because other legislative avenues for addressing such concerns would have stayed open even if the bill had passed"

    Reported Contested Source: Ryan Chan-Wei, opinion columnView cited source

Sources

17 independent publishers whose own reporting we read for this story.

  1. americanbanker.com

    2 articles · September 16, 2026

    Crypto market structure bill fails in Senate vote, 49-50
  2. bankless.com

    1 article · September 15, 2026

    Clarity's Vote Failed. Now What?
  3. cnbc.com

    1 article · September 15, 2026

    Senate cloture vote on Clarity Act fails, dealing regulatory blow to crypto industry
  4. coindesk.com

    3 articles · October 4, 2026

    Crypto for Advisors: The CLARITY Act failed, but the rules came anyway
  5. cointelegraph.com

    5 articles · September 16, 2026

    Crypto stocks slide after CLARITY Act fails to advance in Senate
  6. crowdfundinsider.com

    3 articles · September 15, 2026

    Cloture Vote on the CLARITY Act Fails in the Senate
  7. cryptobriefing.com

    8 articles · October 4, 2026

    Senate rejects Clarity Act as crypto market slides after failed vote
  8. cryptopolitan.com

    1 article · September 16, 2026

    LIVE: Why is Bitcoin crashing?
  9. cryptoslate.com

    1 article · September 15, 2026

    CLARITY Act collapses in Senate after last-minute ethics talks fail
  10. decrypt.co

    3 articles · September 16, 2026

    Clarity Act Stalls in Senate as Crypto Bill Fails to Clear Key Vote
  11. en.sedaily.com

    3 articles · September 16, 2026

    U.S. Senate Blocks Crypto Market Structure Bill, Sending Bitcoin Lower
  12. finance.yahoo.com

    1 article · September 16, 2026

    Crypto billionaire on Clarity Act dying: Government feels broken
  13. fortune.com

    1 article · September 17, 2026

    Crypto.com founder: Crypto’s battles will continue, but the war is over
  14. pymnts.com

    2 articles · September 16, 2026

    Senate Voted No on Taking Crypto Seriously. What About Wall Street?
  15. semafor.com

    1 article · September 15, 2026

    Crypto industry’s top legislative priority implodes
  16. techtimes.com

    1 article · September 15, 2026

    CLARITY Act Senate Vote Held After Overnight Talks Collapsed, Markets Fell to Near-Record Lows
  17. unchainedcrypto.com

    1 article · September 15, 2026

    Senate Blocks the Clarity Act as Democrats Cite Trump's Crypto Conflicts - Unchained

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