The US Senate failed to advance the Digital Asset Market CLARITY Act on Tuesday, falling short of the 60 votes needed to move the bill toward a final vote. The procedural setback means debate on the legislation will continue rather than conclude.
Ripple CEO Brad Garlinghouse acknowledged the failure as a missed opportunity for consumers and American competitiveness in digital finance. Writing on X after the vote, he said his team and the broader industry made a full effort to advance the bill but called the outcome a prioritization of Democratic politics over good policy.
Despite the legislative setback, Garlinghouse framed the moment as a shift rather than an endpoint. He expects the SEC and CFTC to expand their regulatory work to fill gaps left by Congress, with Ripple remaining involved in that process.
Garlinghouse emphasized that the company's position remains strong. "Ripple's business has never been stronger," he wrote, citing demand across traditional finance and digital assets. He argued that a failed Senate vote does not change the company's "momentum, our global footprint, or our customers."
Ripple's Chief Legal Officer Stuart Alderoty reinforced this view, stating that "Ripple and XRP stand on settled ground." He cited the 2023 federal court ruling that found XRP is not a security and a joint SEC-CFTC interpretation issued in March that named XRP a digital commodity. Alderoty also said he expects both agencies to establish clearer rules moving forward.
About the CLARITY Act
The bill proposes dividing oversight of digital assets between the CFTC and SEC and introduces the concept of "ancillary assets"—network tokens whose value may depend on company efforts but would be treated as commodities under new disclosure rules. The legislation also targets decentralized finance platforms that appear decentralized but are operated by identifiable people, requiring CFTC registration for their spot trading activity. Exchanges, brokers, and dealers would face a new federal registration and oversight regime.
Industry reaction to the vote was mixed. Some observers, including CryptoLaw, characterized the failure as a shift in where regulatory battles will occur rather than an ending. However, analyst ChartNerd cautioned that agency rulemaking, while preferable to uncertainty, cannot fully substitute for legislation since regulatory rules can be reversed under future administrations.
