Following the recent failure of the Digital Asset Market Clarity Act (CLARITY Act) to reach the 60 votes required in the Senate, members of Congress remain divided over the path forward for digital asset regulation.
The legislation fell short after losing broad support, transitioning from initial bipartisan backing into a measure primarily championed by Republicans. Democrats ultimately opposed the bill due to concerns regarding loopholes in its ethics provisions.
Emmer Optimistic Despite Setback
Representative Tom Emmer downplayed the defeat in an appearance on Fox Business, expressing confidence that the Senate will continue to advance the measure. Comparing the passage of the GENIUS Act without the CLARITY Act to “having a cell phone without cell towers,” Emmer maintained an optimistic outlook.
“I don’t think it spells doom,” Emmer stated on Wednesday. “It just delays it until after the midterms. You’ll see the CLARITY Act again in the Senate after the midterms,” predicting that the bill will ultimately pass before the end of the year.
Waters Demands Stricter Ethics and Curbs on Trump
In contrast, Representative Maxine Waters, ranking member of the House Financial Services Committee, argued that the bill's demise was a result of failing to address ethical issues. Waters asserted that the legislation fell through because it did nothing to rein in what she described as President Trump's crypto endeavors and corruption.
“Until Congress passes legislation to end the President’s crypto profiteering and recoup his ill-gotten gains, any legislation in the crypto space would only serve to validate and condone his worst actions,” Waters said on Thursday.
Despite the legislative setback, other lawmakers involved in the process, including a group of Democrats led by Senator Kirsten Gillibrand, have pledged to continue pursuing a bipartisan approach to pass crypto regulation.
