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This bill could reshape crypto in America -- and it's sparking a major battle
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A version of the bill already passed the House last year, but it has faced a long and torturous road in the Senate as opponents have fought tooth and nail.
Just like with most things dealing with crypto, the details are complicated and a bit geeky. history.
Business Crypto soared in 2025 — and then crashed. Now what?
"That's an abomination."
"Whether you love crypto or you hate crypto, you should want it regulated," he added. Meanwhile, the technology underpinning Bitcoin and some other cryptocurrencies are also starting to be adopted by the broader financial sector.
SEC Chair Paul Atkins (left) and CFTC Chair Michael Selig (right) look on during a White House crypto and technology event on Aug. 19, 2026. The Clarity Act would formally split oversight of the crypto sector across the two agencies, although the CFTC could play a larger regulatory role.
Business Trump promised a crypto revolution. So why is bitcoin crashing?
But money hasn't been enough to erase the disagreements that have dogged the bill for months.
Democrats, including Massachusetts Sen. Elizabeth Warren, have argued the clause doesn't do enough to prevent conflicts of interest.
The DOJ is currently led by Todd Blanche, who used to be Trump's attorney.
Those concerns intensified after President Trump disclosed he and his family had earned $1.4 billion last year from his crypto ventures — an unprecedented sum for a sitting president.
Brian Armstrong, the CEO of major crypto company Coinbase, speaks as President Trump looks on during a summit of crypto and technology leaders at the White House in Washington, D.C., on Aug. 19, 2026. Alex Wong/Getty Images North America hide caption
Yes.
Community bankers have been especially vocal.
"If community banks aren't there, and those local deposits aren't there to fund it, who's going to fund those small businesses and ranchers and farmers?" she said.
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− Fresh Air Wild Card with Rachel Martin It's Been a Minute Embedded Get NPR+ More Podcasts & Shows Search Newsletters NPR Shop Get NPR+ Tiny Desk New Music Friday All Songs Considered Music Features Live Sessions About NPR Diversity Support Careers Press Ethics What to know about a bill that may reshape crypto in America The legislation would establish rules of the road for the crypto sector for the first time — but opponents are up in arms, and the bill faces an uncertain prospect in the Senate.
+ Fresh Air Wild Card with Rachel Martin It's Been a Minute Embedded Get NPR+ More Podcasts & Shows Search Newsletters NPR Shop Get NPR+ Tiny Desk New Music Friday All Songs Considered Music Features Live Sessions About NPR Diversity Support Careers Press Ethics Crypto suffers major defeat as Senate rejects Clarity Act The legislation was intended to establish rules of the road for the crypto sector for the first time.
− Business This bill could reshape crypto in America — and it's sparking a major battle September 15, 20265:00 AM ET By
Rafael Nam
The Clarity Act would set a regulatory framework for the crypto sector for the first time in the U.S.
+ But it suffered a stinging defeat in the Senate on Tuesday.
− But whether it can clear a key procedural hurdle in the Senate remains uncertain.
+ Business A Trump-backed crypto bill just suffered a bruising defeat in the Senate.
− Karen Bleier/AFP via Getty Images hide caption
It could be a game changer for the cryptocurrency industry.
+ Here's why Updated September 15, 20265:05 PM ET Originally published September 15, 20265:00 AM ET By
Rafael Nam
The Clarity Act would have set a regulatory framework for the crypto sector for the first time in the U.S.
− That is, if it can survive fierce opposition and actually become law.
+ Karen Bleier/AFP via Getty Images hide caption
It was meant to be a game changer for the cryptocurrency industry. Instead, a key piece of legislation championed by both crypto executives and President Trump suffered a stinging defeat in the U.S. Senate — and now faces steep hurdles to become law.
− Business How Trump's latest crypto launch enriches his family On Tuesday, the Senate will hold a key procedural vote on the Clarity Act — officially called the Digital Asset Market Clarity Act — which has been at the top of the crypto sector's wish list for years.
+ Business How Trump's latest crypto launch enriches his family The Clarity Act — officially called the Digital Asset Market Clarity Act — has been at the top of the crypto sector's wish list for years. But on Tuesday, the bill failed to clear a key procedural hurdle following entrenched Democratic opposition.
− The massive bill — which stretches over 600 pages — would establish the first regulations for the crypto sector in U.S.
+ The massive bill — which stretches over 600 pages — would have established the first regulations for the crypto sector in U.S.
− But opponents see this as the industry's attempt to encode into law a set of rules that are far too lenient on the industry, without enough safeguards.
+ But opponents saw it as the industry's attempt to encode into law a set of rules they saw as far too lenient on the industry, without enough safeguards.
+ Now, it faces an uncertain future, as the crypto industry and its backers in the Senate must decide whether to try again at a later date.
− Here's 5 key things to know about the Clarity Act — and why opponents are fighting so hard to prevent it from ever being passed.
+ Here are 5 key things to know about the Clarity Act — and why opponents are fighting hard to prevent it from ever being passed.
− But it effectively establishes a clear legislative framework for the crypto sector for the first time in U.S.
+ But the measure effectively would have established a clear legislative framework for the crypto sector for the first time in U.S.
− That would mark a sea change from today, where crypto regulation can change depending on who controls the White House.
+ That would have marked a sea change from today, when crypto regulation can change depending on who controls the White House.
− Under President Biden, for example, the Securities and Exchange Commission took an aggressive approach against the crypto sector.
+ Under President Biden, for example, the Securities and Exchange Commission took an aggressive approach toward policing the crypto sector.
− But that changed radically under President Trump with the agency now led by Paul Atkins, a former adviser to the industry.
+ But that changed radically under Trump, with the agency now led by Paul Atkins, a former adviser to the industry.
− "Tens of millions of Americans are investing in products that don't have clear regulatory oversight," said Ryan VanGrack, vice chair of Coinbase, a major crypto firm.
+ "Tens of millions of Americans are investing in products that don't have clear regulatory oversight," said Ryan VanGrack, vice chair of the crypto firm Coinbase, before the vote.
− "And this is the best opportunity we have ever had to do just that."
The crypto sector has also grown beyond Bitcoin to include all kinds of cryptocurrencies – such as meme coins.
+ "And this is the best opportunity we have ever had to do just that."
The crypto sector has also grown beyond Bitcoin to include all kinds of cryptocurrencies — such as meme coins.
− The Clarity Act would formally split oversight of the crypto sector between the SEC and the Commodity Futures Trading Commission.
+ The Clarity Act would have formally split oversight of the crypto sector between the SEC and the Commodity Futures Trading Commission.
− But — controversially— it would give the CFTC, a far smaller regulator, the majority of control.
+ But — controversially— it would have given the CFTC, a far smaller regulator, the majority of control.
− Critics say handing the CFTC the bulk of the reins is the crypto sector's way to avoid heavy regulatory scrutiny.
+ Critics say handing the CFTC the bulk of the reins was the crypto sector's way to avoid heavy regulatory scrutiny.
− Crypto industry executives deny that's the case, and Trump administration regulators have defended their oversight of the industry.
+ Crypto industry executives denied that's the case, and Trump administration regulators have defended their oversight of the industry.
− Alex Wong/Getty Images North America hide caption
It's effectively a vote to decide if the bill gets to move forward at all.
+ Alex Wong/Getty Images North America hide caption
It was effectively a vote to decide if the bill can move forward.
− The Senate would need 60 "yes" votes to clear that hurdle — meaning all 53 Republicans would have to back it, along with seven Democrats or Independents.
That's far from guaranteed.
+ It needed 60 "yes" votes to clear that hurdle.
− The bill still faces significant opposition, and Tuesday's procedural vote is its most critical test to date.
+ Only 49 senators voted "yes" — far below the threshold.
− If it does advance, the Senate can move ahead with debate, and, eventually, a final vote.
+ Meanwhile, 50 senators voted "no," including all Democrats and four Republicans: Sen. Susan Collins of Maine, Josh Hawley of Missouri, Jerry Moran of Kansas and Thom Tillis of North Carolina. Tillis, however, added a motion so that the bill can be reconsidered and brought up again for a vote.
− Even if the bill passes the Senate, though, it would not go straight to President Trump.
+ Even if the bill had survived the procedural vote on Tuesday, it was never clear that it had enough supporters in the Senate to pass.
− Because senators have changed the bill since it passed the House last year, both chambers would still have to agree on a final version.
+ And because senators have changed the bill since it passed the House last year, both chambers would still have had to agree on a final version.
− But it's unclear how soon that might happen, with a busy agenda in Congress — and midterm elections coming up fast in early November.
The crypto sector had been hoping to pass the Clarity Act much sooner — and have amassed tens of millions to spend on the upcoming elections.
+ The crypto sector had been hoping to pass the Clarity Act much sooner — and has amassed tens of millions of dollars to spend on the upcoming elections.
− For Democrats, a key sticking point is an ethics clause intended to prevent presidents and other elected officials from profiting from the crypto industry while in office.
+ Though not all Democrats oppose the bill, for many a key sticking point has been — and still is — an ethics clause intended to prevent presidents and other elected officials from profiting from the crypto industry while in office.
− Notably, the Department of Justice would be tasked with enforcing the ethics clause, which Democrats strongly object to since they don't believe the agency would provide a meaningful check on a sitting president.
+ Notably, the Department of Justice would have been tasked with enforcing the ethics clause, which Democrats strongly objected to since they don't believe the agency would provide a meaningful check on a sitting president.
− Republicans are now trying to break the impasse.
Under the new language unveiled by Republicans, federally elected officials and their spouses would not be allowed to issue their own cryptocurrencies.
+ Before Tuesday's vote.
− That could effectively prevent Trump from continuing $TRUMP, a meme coin he launched early last year— a point Trump agreed to abide by.
+ Republicans tried to break the impasse. Over the weekend, they unveiled new language in the bill to prevent federally elected officials and their spouses from issuing their own cryptocurrencies. That would have effectively prevented Trump from continuing $TRUMP, a meme coin he launched early last year — a point Trump agreed to abide by.
− Officials would also have to divest "significant" financial stakes in the crypto sector, a provision that could affect some of Trump's crypto business interests — though critics say the language is loose enough to allow the president to avoid it altogether.
+ Officials would also have had to divest "significant" financial stakes in the crypto sector, a provision that could affect some of Trump's crypto business interests — though critics said the language was loose enough to allow the president to avoid it altogether.
− The new language would also give state attorney generals more ability to bring lawsuits if they suspect a breach of ethics rules.
+ The new language would also have given state attorneys general more ability to bring lawsuits if they suspected a breach of ethics rules.
− Many people in the banking sector— especially community bank leaders — are against it.
+ Many people in the banking sector — especially community bank leaders — were against it.
− One of the main disputes involves a segment of the crypto market called stablecoins.
+ One of the main disputes involved a segment of the crypto market called stablecoins.
− The bill would offer financial rewards such as interest payments to customers who place their money with these crypto companies.
+ The bill would have allowed these companies to pay interest to their customers.
− Business The week when crypto won big in America Banks argue those incentives allow crypto companies to compete for customers' money without being subject to the same regulations as traditional banks.
+ Business The week when crypto won big in America Banks, though, argued those incentives would have allowed crypto companies to compete for customers' money without being subject to the same regulations as traditional banks.
− Crypto companies have disputed that characterization and argue these incentives are similar to what many credit card companies offer, such as cash backs or points.
+ Crypto companies have disputed that characterization and have argued that these incentives are similar to what many credit card companies offer their customers, such as cash back or points.
− They say allowing crypto companies to offer these types of incentives would pose a direct threat to their business and lead them to lose customers.
+ They have said allowing crypto companies to offer these types of incentives would have posed a direct threat to their business and led them to lose customers.
− Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, says keeping their customers' money with local banks is critical because it allows them to provide small business and agricultural loans to members of their communities.
+ Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, said that keeping their customers' money with local banks is critical because it allows them to provide small business and agricultural loans to members of their communities.
− "I don't think it's going to be the crypto industry."
It's impossible to say whether Republicans have the votes to survive Tuesday's hurdle — or whether they would need to try again at a later date.
+ "I don't think it's going to be the crypto industry."
The bill is not dead — at least not yet.
− The vote is a priority for Trump, who has strongly supported the crypto industry.
+ The vote has been a priority for Trump, who has strongly supported the crypto industry.
− Senate Majority Leader John Thune (R-S.D.) set up Tuesday's vote before the Senate took a break for recess even though the outcome remained uncertain.
+ But the crypto industry will likely face a tough time trying to pass it this year, with the November midterms quickly approaching.
− But the Clarity Act has faced so many twists and turns that even if it survives beyond Tuesday, the path ahead remains uncertain.
+ It's also hard to say how the Senate and Congress more broadly will change after the midterms. A Democratic takeover of the Senate or the House would make it even more difficult for the bill to pass, leaving the fate of the Clarity Act up in the air.