Senate stalls Clarity Act after ethics talks over Trump crypto holdings

The Senate rejected a motion to advance the Clarity Act on Sept. 15, leaving a proposed federal framework for digital assets stalled after Democrats objected to its safeguards for President Donald Trump’s crypto interests. The motion failed 49-50, short of the 60 votes needed to proceed, according to the Senate’s cloture record.

The Associated Press reported that no Democrats supported the motion, while four Republicans voted against it. The procedural vote was on whether to begin consideration of the bill, not a final vote on its passage.

What would the Clarity Act have changed?

The bill would establish a federal regulatory framework for digital assets, an area where the Securities and Exchange Commission and Commodity Futures Trading Commission have divided oversight. Supporters said the rules could give crypto firms greater legal certainty and add consumer protections.

The vote tested a push for uniform rules in a crypto market valued at $2.3 trillion, the AP reported. Senate Republicans had released revised bill text over the weekend, but the changes did not secure enough Democratic votes.

Why did Democrats oppose the bill?

Democrats said the ethics provisions did not go far enough to prevent Trump and his family from profiting from crypto businesses while he is president. The AP reported that Trump agreed to restrictions on federal elected officials issuing digital assets, including meme coins, and to additional powers for state attorneys general.

Democrats sent a counteroffer late Monday seeking broader ethics rules, stronger enforcement and a requirement that a president divest holdings above a set value, the AP reported. No final deal was reached before the vote.

Trump reported more than $1.4 billion in crypto-related income for 2025, including more than $500 million in revenue from World Liberty Financial sales, according to his annual disclosure and the AP. The stablecoin law enacted last year barred members of Congress and their families from profiting from stablecoins, but did not cover Trump or his family.

Can lawmakers revive the bill this year?

Sen. Mark Warner said he still wanted crypto regulation but opposed passing it while the president could personally profit from the industry, the AP reported. Several Democrats who opposed the bill over ethics concerns said they remained open to negotiations.

Congress is due to leave Washington ahead of the November midterm elections, and Republicans involved in the bill said it could stall indefinitely. The White House said it would turn to federal agencies to implement parts of its crypto agenda; whether lawmakers will reach a new deal, or when the bill could return, remains unclear.