A major crypto regulation bill backed by the White House died in the Senate on Tuesday. This is a huge blow for supporters who wanted clear rules for digital currency. The bill was called the Clarity Act. It failed to pass a key procedural vote. Senator Cynthia Lummis from Wyoming led the effort. She said the work on the bill is now over. She noted they had addressed over 120 requests from critics. That was not enough to save it.
Democrats played a major role in blocking the legislation. Several senators argued the bill did not go far enough on ethics. They pointed to the rapid growth of President Trump’s crypto holdings. Financial disclosure forms show his income surged by 250 percent. It jumped from $620 million to $2.2 billion between 2024 and 2025. Much of this money comes from ventures run by his sons. Senator Cory Booker of New Jersey voted against the bill. He stated it allows the corruption of the president to continue.
Republican senators also had serious concerns about the package. Senators Susan Collins, Josh Hawley, and Jerry Moran did not support it. They had outstanding questions that were never answered. Negotiations ran until the very end of the day. A last minute update was added to the bill. It tried to win over fence sitters. It did not work. Senator Ruben Gallego of Arizona worked on ethics provisions. He said banking staff shut down talks at the last minute. He claimed they feared an ethics amendment vote. He argued they cared more about protecting the president’s income. He said they cared less about getting a good bill.
Other issues kept senators on the sidelines. Some worried about money laundering risks. Senator Andy Kim of New Jersey cited concerns about terrorist financing. He said he had not seen enough engagement on cartel funding. He remained undecided until the final vote. Senator John Cornyn of Texas was also unsure. He worried about the impact on community banks. He feared the currency could be used for crime. He argued they should have voted to amend it later. He believed the bill could be strengthened with changes.
The failure of the bill changes the Senate schedule. It opens time for other legislative priorities. Senator Ted Cruz has a college sports bill ready to go. It aims to protect student athletes from financial exploitation. Senate Majority Leader John Thune confirmed they will try to move it. He hopes to find sixty votes for the measure. The crypto bill is now off the table. The focus shifts to other urgent matters. The political landscape in Washington has shifted again. The money trail remains a central point of debate. The debate over digital currency regulations is far from over.