crypto industry

A procedural vote failure on the Digital Asset Market Clarity Act signals that the crypto industry cannot rely on legislative solutions in the near term. Coinbase and Ripple leaders are now calling on the SEC and CFTC to use existing authority to create regulatory clarity without waiting for Congress.

• The Senate fell short of the 60 votes needed to advance the CLARITY Act on Tuesday.
• Coinbase co-founder Brian Armstrong said the industry cannot wait for Congress and expects the SEC and CFTC to establish rules using existing authority.
• Ripple CEO Brad Garlinghouse blamed Democratic politics for the failure and called for a post-mortem on what went wrong.

• 60 Votes required to advance the bill in the Senate procedural vote
• ~12 Democrats seen as possible supporters before negotiations collapsed
• 3 Republicans who voted against the measure: Collins, Hawley, and Moran
• 1 Republican, Tillis, who voted no to preserve motion to reconsider option

The US Senate failed to advance the Digital Asset Market Clarity Act after a procedural vote on Tuesday (September 16) fell short of the 60 votes needed to move forward. According to CryptoPotato, the failure followed last-minute negotiations between Republicans and crypto-friendly Democrats that broke down over ethics rules and concerns about President Trump and his family’s involvement in the crypto industry. Around a dozen Democrats had been viewed as potential supporters, but they ultimately withheld their votes when talks produced no agreement.

Armstrong Signals Shift to Regulatory Path Over Legislative Strategy

Coinbase co-founder Brian Armstrong acknowledged the setback as “disappointing” but said the industry “cannot wait” for Congress to act. Armstrong stated that the SEC and CFTC already possess sufficient authority to establish clear rules and expects them to begin working on that foundation in earnest. He argued that clarity is coming to the crypto sector regardless of the bill’s fate.

Armstrong also noted that some concessions made during CLARITY negotiations were difficult for the industry to accept, potentially making the setback easier to absorb.

Ripple CEO Criticizes Democrats, Emphasizes Regulatory Optimism

Ripple CEO Brad Garlinghouse characterized the vote as personally stinging and said his team gave everything to advance the legislation.

This was an opportunity bigger than Ripple or one company – we did this for the industry, for consumers and to cement the US’s position as the crypto capital of the world and as a leader in the future of finance. Ultimately, consumers and US competitiveness got left behind.

Brad Garlinghouse, Ripple CEO

Garlinghouse blamed Democratic politics for elevating what he called the “anti-crypto army” over substantive policy considerations. He called for a post-mortem examination of why the bill failed, yet expressed optimism that SEC Chair Atkins and CFTC Chair Selig will continue developing rules to address the legislative gap the failed bill would have closed.

Republican and Democratic Divisions Block Path Forward

Three Republicans voted against the measure: Susan Collins of Maine, Josh Hawley of Missouri, and Jerry Moran of Kansas.

North Carolina Republican Thom Tillis also voted no, though he did so specifically to preserve his ability to file a motion to reconsider and keep open the possibility of another vote. Delaware Democrat Chris Coons did not vote. Democratic Senator Ruben Gallego said Republicans should have worked more closely with his party on a version that included stronger ethics provisions, while Catherine Cortez Masto noted she had negotiated until the final moments but that important issues remained unresolved after Republican leadership ended talks.

The BlockWest read. The legislative defeat does not end the regulatory process; it redirects it. Both Armstrong and Garlinghouse signaled confidence that existing SEC and CFTC authority will yield rules that address market structure, custody, and trading standards. For institutional allocators and stablecoin operators, the timeline and scope of agency rulemaking now matter far more than Congressional action. The question is whether agencies can deliver clarity faster than a recalcitrant Congress.

The next inflection point is whether the SEC and CFTC move quickly to fill the regulatory gaps that CLARITY was designed to close. Garlinghouse specifically named SEC Chair Atkins and CFTC Chair Selig as the officials expected to continue rulemaking, making their next statements on digital asset regulation the concrete marker to watch for whether industry confidence in the administrative path is justified or merely hopeful.