U.S. regulators rush to write crypto rulebook after Clarity Act stalls in Senate
State and federal regulators are rushing to fill the void after comprehensive crypto rules failed to clear the Senate.
The failure of the US Senate to advance the Digital Asset Market Clarity (CLARITY) Act last week has left the cryptocurrency industry considering how to counteract the potential influence of Democratic lawmakers. With just 42 days until the 2026 midterms, some advocates speculate that the crypto sector may intensify efforts to sway key congressional races.
Following the CLARITY vote, Coinbase and Ripple Labs-backed political action committee (PAC) Fairshake announced plans to invest $30 million to oppose Senator Sherrod Brown in Ohio's Senate race. Brown, who chaired the Senate Banking Committee under Democratic leadership, is known for advocating policies against crypto and could potentially be a deciding vote in a Democratic-controlled Senate.
The CLARITY vote provided the industry with a clear picture of reliable supporters and those less aligned, making it difficult for those who voted against the bill to justify supporting them financially during the midterms. Stand With Crypto, an initiative launched by Coinbase in 2023, warned that lawmakers who failed to support the CLARITY Act could face consequences in the upcoming midterms based on their votes.
The group responsible for rating politicians based on their stance on crypto could significantly impact elections and how crypto-aligned PACs allocate funds to target specific candidates. Currently, Fairshake and its affiliated PACs, Defend American Jobs and Protect Progress, have not disclosed any post-CLARITY spending to the Federal Election Commission (FEC).
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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