Clarity Act Falls Short as Crypto Lobbying Meets Banking Opposition
The Clarity Act, a comprehensive regulatory structure bill for the cryptocurrency industry, has failed in the Senate after winning House passage. The measure was blocked by three Republicans and Democrats who cited ethics concerns related to President Donald Trump's cryptocurrency holdings.
Traditional banking groups, including the American Bankers Association, opposed the bill due to fears that digital assets would drain deposits from traditional institutions. The ABA disclosed an 80 percent increase in federal lobbying expenditures in the first half of 2026 compared with the same period the previous year, targeting the Clarity Act.
The crypto industry spent over $8.8 million on lobbying in the first half of 2026 alone to push for the bill, following a previous surge of $8.8 million in the second half of 2025 for stablecoin legislation. Despite this significant spending, the measure failed due to procedural votes and opposition from within both parties.
The sector is now shifting strategy, focusing on midterm elections and regulatory negotiations with the Trump administration. Industry leaders have expressed a preference for durable legislation over administrative action, but the path back to Congress remains uncertain.