Crypto lobbying by Coinbase and major industry groups declined in the third quarter of 2026, according to Bloomberg Government data, following the Senate’s rejection of the Digital Asset Market Clarity Act on September 15, 2026.
Spending remains above $4 million
Despite the quarterly decline, crypto lobbying totals stayed above $4 million in Q3, a threshold the industry has now cleared for six consecutive quarters. Coinbase alone spent roughly $2.2 million in the first half of 2026, making it one of the top securities and investment lobbyists in Washington. Kraken spent close to $1 million over the same period.
The CLARITY Act, widely known as the CLARITY Act, needed 60 votes to advance but failed 49-50. All 49 Democrats voted against cloture, and four Republicans—Sens. Jerry Moran, Susan Collins, Josh Hawley, and Thom Tillis—crossed the aisle to join them.
Key sticking points
Key sticking points included ethics rules targeting senior officials’ crypto profits, banking opposition to stablecoin rewards, and disagreements over DeFi provisions. Banking groups and New York lawyers had publicly opposed the bill in the days before the vote, warning the stablecoin yield provisions could drain bank deposits.
In the first half of 2026, the broader industry had directed more than $8 million toward market-structure advocacy. That campaign generated nearly 50,000 congressional contacts through Stand With Crypto, according to earlier reporting. The September 15 Senate vote had turned into a $190 million grassroots showdown, underscoring how deeply the industry had invested in pushing the bill through.
Some external lobbying firms terminated their crypto clients in Q3. The exits reflect a strategic recalibration. With the bill stalled ahead of midterms, several firms judged the near-term return on Washington spending to be too uncertain. Related political spending through groups like Fairshake, however, remains active, preserving longer-term legislative leverage even as direct lobbying moderated.
Industry pivots to SEC and CFTC
The Q3 data does not mark the end of crypto lobbying, it marks a shift in its target. With Congress stalled, both the SEC and CFTC moved forward with multiple rule-writing initiatives under existing authority. The two regulators made nine separate moves to write crypto rules without the CLARITY Act, signaling that the regulatory framework would be built through agency action regardless of legislative timing.
Coinbase CEO Brian Armstrong had anticipated this outcome. Before the vote, Armstrong said regulatory clarity would arrive “one way or another”, either through legislation or through independent SEC and CFTC rulemaking. Post-failure, that second path is now the base case.
Bitwise CIO Matt Hougan framed it bluntly: “Crypto sacrificed long-term certainty and got better rules, faster.”
The CLARITY Act’s collapse handed Coinbase a potential stablecoin reward edge, since the bill’s opponents, banks and state attorneys general, had specifically targeted stablecoin yield provisions. With those provisions gone, exchanges offering stablecoin rewards face less legislative risk for now.
The political picture remains fluid. Seven Democrats have reopened talks on the bill, led by Sen. Kirsten Gillibrand, pledging to pursue it “in a bipartisan fashion.” However, with fewer than 14 working legislative days left before the campaign season, revival before midterms looks unlikely.
The leadership vacuum at the White House Crypto Council adds further uncertainty. Executive Director Patrick Witt recently exited the council, leaving no named successor. With David Sacks and Deputy Director Harry Jung also gone, the council’s capacity to coordinate a renewed legislative push is limited.
For investors, the crypto lobbying pullback reinforces near-term reliance on agency rulemaking, which can move faster but is also more reversible across administrations.
