$1.4 billion dispute causes Clarity Act to be aborted

According to Woofun AI, the “Clarity Act” unexpectedly failed in the Senate vote on September 15. The root cause was moral and ethical disputes rather than regulatory differences. This result marks a major setback in the US cryptocurrency legislation process, and the industry's long-awaited clear legal framework has temporarily come to an end.

Looking back at the legislative process, the US Securities and Exchange Commission and the US Commodity Futures Trading Commission have long been involved in a jurisdiction dispute over the definition of token attributes — whether they are stocks or commodities. The Clarity Act aims to put an end to the chaos by giving the US Commodity Futures Trading Commission clear regulatory powers. In July 2025, the House of Representatives passed the bill by a large margin; in May 2026, a US Senate committee also approved it.

According to data compiled by Woofun AI, the legislative process seemed to advance smoothly until the final voting process was reversed.

The details of the veto reveal a deep political game: four Republican lawmakers joined forces with all Democrats to block the bill's passage. The central point of contention is that in 2025 alone, Trump's cryptocurrency business attracted more than $1.4 billion in capital inflows, and lawmakers are concerned that the current bill is not binding on this.

Although the Republicans tried to persuade their opponents, they were unsuccessful. Cynthia Loomis, the most pro-cryptocurrency member in the US Senate, admitted in advance that if this vote fails, all efforts will be in vain.

The path of subsequent supervision turned to administrative leadership. The US Securities and Exchange Commission is formulating independent regulatory rules, and public comments will be collected until the end of October; the US Commodity Futures Trading Commission also said it will continue its work. Since the Stablecoin-related Genius Act was passed in 2025, inter-agency cooperation is still possible.

However, due to the November midterm elections, the legislative impasse will continue until at least 2027. If the Democrats win control of the US Senate, Elizabeth Warren may lead the relevant committees, making it even more difficult to advance regulation. Investors should keep a close eye on the SEC's actions rather than Senate developments.