Tao Zhu, Jinse Finance
Update: In the early hours of the 16th (Beijing Time), the U.S. Senate concluded its vote on the procedural motion for the CLARITY Act. The measure failed to pass with 49 votes in favor and 50 against, halting its legislative progress.
Senator Cynthia Lummis, one of the bill’s primary drafters, issued a statement after the legislation stalled, accusing Senate Democrats of never having taken seriously the protection of consumers and the maintenance of U.S. leadership.
Democratic Senator Elizabeth Warren criticized the bill, arguing that it would exacerbate Trump’s corruption. She dismissed the ethics provisions negotiated between Republicans and the White House as a mere "fig leaf," asserting they would not prevent Trump from continuing to profit from crypto assets. Warren further stated that the CLARITY Act would create significant loopholes in nearly a century of securities law, allowing non-crypto companies to tokenize assets to evade investor protections, and permitting banks to use customer deposits for crypto lending, trading derivatives, operating nodes, and selling related software.
Abstract: With a vote on the CLARITY Act imminent, this article outlines the evolution of the legislation from its inception to the upcoming vote.
I. The CLARITY Act Faces a Procedural Vote
On September 15, official sources announced that the U.S. Senate would hold a procedural vote on the CLARITY Act at 2:15 p.m. local time on September 15. The bill requires 60 votes in support to advance to the formal deliberation stage. Senate Republicans released the final revised text on September 14, incorporating 126 amendments proposed by the Democratic Party and most of the ethical provisions accepted by Trump. It should be noted that this vote is not a final determination on the passage of the bill.
According to crypto journalist Eleanor Terrett, industry insiders expect that the counterproposal put forward by U.S. Democrats based on the CLARITY Act will address most, if not all, of the targeted amendments made by Republicans the previous night. It remains unclear whether Republicans will make further concessions before tomorrow's vote or insist that Democrats "vote first if they want further changes."
II. Despite the 60-Vote Threshold, the CLARITY Act Still Faces Multiple Obstacles
On September 14, a coalition of 18 state attorneys general, led by New York Attorney General Letitia James, sent a letter to the leadership of the Senate Banking Committee, urging the Senate to reject the CLARITY Act in its current form. The letter pointed out that the bill would weaken enforcement authority at the state level at a time when fraud in the digital asset sector is intensifying. This coalition is notably bipartisan, with Republican attorneys general from Kansas and Ohio joining their Democratic counterparts in opposing the bill.
Senator Elizabeth Warren argues that the new provisions could allow officials appointed by Trump to halt enforcement efforts and contain loopholes that enable them to continue profiting from businesses such as World Liberty Financial. She also plans to seek unanimous consent in the Senate to pass the "Ending Presidential Banking Corruption Act," which would restrict presidents, vice presidents, related officials, and their family members from obtaining banking licenses, and revoke any such licenses issued to these individuals since January 20, 2025. This proposal is expected to struggle for support in the Republican-controlled Senate.
Patrick Witt, the White House advisor on crypto affairs, stated that White House officials met with Trump last Friday to explain the government ethics provisions in the latest version of the CLARITY Act, after which Trump agreed to make further concessions. Relevant restrictions may require Trump to transfer his crypto asset investments into a blind trust and grant states certain accountability powers. Witt described this as the "strongest" and "historic, unprecedented" arrangement in federal ethics law, while also noting that Trump was assured these provisions would not be used for political persecution. On Sunday evening, Senate Republicans released a new version of the bill text, continuing to compromise with Democrats on issues such as government ethics and criminal liability for DeFi projects. Witt stated that Republicans had accepted approximately 95% of the demands from Democratic negotiators; if senators still oppose the bill at this stage, their decision is likely driven more by political considerations than policy disagreements.
However, staff members of the Democratic-led Senate Banking Committee believe that the new text still grants excessive authority to officials appointed by Trump, particularly the U.S. Attorney General, which could hinder the enforcement of ethics provisions. Under the current design, state attorneys general cannot directly hold officials such as the president, vice president, members of Congress, and federal judges accountable for violations, but they can take action against crypto trading platforms listing improper assets and against the U.S. Attorney General. Additionally, attorneys general from multiple states, banking groups, and some crypto industry participants have raised objections regarding enforcement authority, stablecoin yields, and DeFi provisions.
The Senate will first hold a procedural vote, requiring at least 60 votes for the bill to proceed to further deliberation. Even if this threshold is met, the bill must still undergo amendment discussions and additional voting. If ultimately approved by the Senate, it must be sent back to the House of Representatives for processing. Witt indicated that even if the bill fails to pass, the SEC and CFTC will continue to advance the formulation of crypto regulatory rules.
As of press time, the probability on Polymarket that the CLARITY Act will be signed into law in 2026 is only 20%, whereas yesterday, the probability of it becoming law this year was as high as 31%.
U.S. SEC Chair Paul Atkins has urged Congress to advance the CLARITY Act and submit it to the President for signature as soon as possible. He also stated that regardless of whether the bill is ultimately passed, the SEC will continue to advance its regulatory agenda for crypto assets to support U.S. investors and technological innovators. Atkins noted that the SEC's "Project Crypto" will focus on three pillars: establishing rules for crypto asset issuance to provide a clearer regulatory framework for companies raising capital through digital assets in the United States; updating transfer agent rules, which are nearly 40 years old, to incorporate blockchain ownership ledgers; and clarifying custody requirements for crypto assets held by investment advisers and regulated funds, while permitting self-custody and the use of state-chartered trust companies under specific conditions. The U.S. Senate is scheduled to hold a key procedural vote on advancing the bill this Tuesday. Currently, banking groups are still calling for stricter limits on stablecoin interest and rewards, while 18 state attorneys general and the Attorney General of the District of Columbia have expressed concerns that the bill could weaken local authority to pursue crypto fraud.
Galaxy CEO Mike Novogratz posted that if the CLARITY Act does not make progress tomorrow, we may have to wait a very long time for cryptocurrency regulation—if it arrives at all. This would be disastrous for the United States and would force more segments of our industry to move overseas. The digital and blockchain revolution will continue. While the SEC and CFTC may need another two years to formulate rules and allow businesses to get started, prolonged uncertainty is detrimental. Mike Novogratz called on bipartisan senators to see the bigger picture.
Nate Geraci, President of The ETF Store, posted that the sole reason the CLARITY Act has not yet been passed is that cryptocurrencies are disrupting the traditional banking model... It really is that simple. We can discuss ethical provisions, the BRCA (Blockchain Regulatory Certainty Act), and other issues, but ultimately, everything points to the same core issue: cryptocurrencies are reducing the demand for banks as intermediaries and impacting the business model that relies on net interest income (NII). Some politicians support this traditional model because they derive benefits and incentives from it.
III. Timeline Review: From the Drafting of the CLARITY Act to the Vote
On May 29, 2025, H.R.3633, the Digital Asset Market Clarity Act, was formally introduced; it passed House committee review in June and was approved by the House of Representatives on July 17 by a vote of 294 to 134. The bill then moved to the Senate, undergoing multiple rounds of rewriting and bipartisan negotiations from late 2025 through 2026. On May 14, 2026, the Senate Banking Committee passed the bill by a vote of 15 to 9. After months of maneuvering over issues such as stablecoin yields, DeFi regulation, and the Trump family's crypto interests, the Senate finally set September 15 as the date for the key procedural vote. On September 15, the Senate held a vote on the motion to invoke cloture.
The specific timeline is as follows:
On May 29, 2025, French Hill, Chairman of the House Financial Services Committee, formally introduced H.R.3633, the Digital Asset Market Clarity Act of 2025. Since then, the CLARITY Act has officially entered the legislative process of the 119th Congress.
On June 10, 2025, the House Financial Services Committee and the House Agriculture Committee advanced the bill separately. Both committees completed key reviews, paving the way for a floor vote in the House of Representatives.
On June 11, 2025, the House Financial Services Committee passed H.R.3633. The bill formally moved from the committee stage to the floor consideration stage.
On July 17, 2025, the House of Representatives passed the CLARITY Act with 294 votes in favor and 134 against. This marked the most significant legislative breakthrough for the bill to date, garnering strong bipartisan support.
On July 22, 2025, Senators Tim Scott and Cynthia Lummis released a discussion draft of the Senate version, marking the bill's formal entry into the negotiation and restructuring phase for the Senate variant.
In the second half of 2025, the Senate engaged in ongoing negotiations concerning market structure, SEC/CFTC jurisdiction, DeFi, and stablecoin yields. The legislation gradually evolved from the House version into a comprehensive market structure bill requiring renewed negotiations in the Senate.
On January 13, 2026, the Senate Banking Committee published relevant text for the new version of the CLARITY Act and advanced it for committee consideration. The Senate began substantive deliberations on H.R. 3633 received from the House of Representatives.
On January 29, 2026, the Senate Agriculture Committee approved the portions of the market structure bill under its jurisdiction, marking progress along another key committee pathway.
In late January 2026, the White House intervened in the dispute over stablecoin yields, convening discussions between the banking and cryptocurrency industries. Stablecoin yields became one of the significant obstacles to the Senate's advancement of the CLARITY Act.
In April 2026, the Senate Banking Committee continued to advance the CLARITY Act. Issues such as stablecoin yields and Trump-related conflicts of interest remained unresolved.
On May 12, 2026, the Senate Banking Committee released a new alternative substitute text (ANS) of approximately 309 pages. This represented a major rewrite of the Senate version, covering numerous core provisions related to stablecoin yields, DeFi, and other key areas.
On May 14, 2026, the Senate Banking Committee passed the CLARITY Act by a vote of 15 to 9. The bill successfully cleared a critical hurdle at the Senate committee level, moving closer to a full Senate vote.
From June to July 2026, the Senate continued negotiations on stablecoin yields, DeFi, and enforcement jurisdiction. The bill failed to complete floor proceedings before the summer recess, entering a more extended period of bipartisan negotiations.
On August 22, 2026, the Senate scheduled the first key procedural vote on the CLARITY Act for September 15, re-establishing a clear timeline for the bill's advancement in the Senate.
In early September 2026, the crypto industry and the banking sector intensified their lobbying efforts. Key contentious issues in the final stage included stablecoin yields, competition for bank deposits, and the Trump family's crypto interests.
On September 14, 2026, Senate Republicans released a further revised version of the text. The new draft included provisions such as restrictions on crypto holdings by Trump and government officials, as well as enforcement powers for state attorneys general, in an effort to secure Democratic support.
On September 15, 2026, the Senate held a key vote to invoke cloture on the CLARITY Act. This was not a vote on final passage, but rather a procedural vote to determine whether debate could be ended and the bill could proceed to subsequent consideration or a final vote. Typically, 60 votes are required.