Analysis-Crypto bill’s defeat shows limits of industry’s political machine

On September 16, the U.S. Senate voted 49-50 against advancing the Clarity Act, a major cryptocurrency bill that would establish a regulatory framework for the $2 trillion market. This marks a significant setback for the crypto industry, showing the limits of its political muscle in Washington. Despite spending over $300 million on the 2024 and 2026 elections to push crypto policy, the industry failed to gain bipartisan support.

President Donald Trump's personal crypto dealings became a flashpoint for Democrats, while opposition from the banking lobby also played a role in the defeat. The industry vows to continue its advocacy efforts, supporting pro-crypto candidates across the political spectrum.