Clarity Act Collapse Exposes Crypto Policy Fractures

Interviews with industry participants and legislative aides indicate that the Clarity Act’s collapse was not the result of a single procedural error. Instead, the bill appears to have broken down under the weight of competing priorities, unresolved policy disputes and a drafting process that failed to hold together as the vote approached.

The failed effort is a reminder that crypto market structure legislation remains politically fragile in Washington. Even after months of work, lawmakers and stakeholders could not align on the core provisions needed to move the bill forward, leaving the industry without a clear legislative path on issues such as regulatory jurisdiction, compliance standards and market oversight.

The setback may slow momentum for broader digital asset reform, particularly at a time when market participants have been pressing for clearer rules. It also highlights the challenge of converting industry consensus into durable legislation once the debate shifts from broad principles to statutory language.