Senator Cynthia Lummis (Wyoming-Republican) spent more than five years or most of her Senate career drafting the CLARITY Act. The bill ultimately failed to clear the vote, and Lummis, who is set to retire soon, already knew the situation was deteriorating the day before the vote while speaking at a crypto event in Washington.
The rejection came not over the digital asset regulatory framework itself, but rather a last-minute dispute over ethics requirements.
A Rejected Final Offer
Republicans stated they had put forward a final offer containing concessions for Democrats, including Donald Trump’s agreement to accept unprecedented ethics restrictions on his crypto holdings. The 635-page Republican draft also incorporated 126 substantive changes requested by Democrats.
Democrats rejected the proposal, arguing it offered little change from previous drafts on the table and still allowed Trump to evade meaningful accountability over his crypto conflicts of interest.
Democratic Senator Mark Warner, who drafted the bill’s illicit finance provisions and had wanted to vote “yes,” underscored his party’s red line. “A president should not be able to use the power of the office to benefit their own crypto holdings while their administration makes decisions that directly impact their value,” Warner said.
Voting Moves Forward Anyway
Democrats stated they remained open to negotiations until the final moments, but Republicans ended talks and chose to force a vote. Although Republican leadership had the option to push back Tuesday’s schedule if negotiations were still active, they insisted on moving forward.
Is There Still Hope?
The procedural path for the bill has not been completely exhausted after Republican Senator Thom Tillis, who voted against the cloture motion, filed a motion to reconsider the vote. Tillis’s move leaves a narrow window of opportunity to revive the legislation.
Senate Majority Leader John Thune now holds the authority to file a new cloture motion. However, any future step Thune takes will still require bipartisan support - the exact compromise they failed to reach on the Senate floor that day.
Reported by CoinDesk.
Previously: Republicans Claim CLARITY Act Revision as Final Offer - But Democrats Push Back with Counter-Proposal
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
