CLARITY Act Stalls in Senate Amid Fears Over Trump's Crypto Holdings

The CLARITY Act, a proposed federal framework for the digital asset market, has failed to advance in the Senate.

The bill, which would have established a permanent regulatory system for crypto and other digital assets, passed in the House in July 2025 but fell short of the required 60 votes in the Senate, receiving only 50 votes. Senator Thom Tillis changed his vote from yes to no at the last minute, likely due to filling in for Majority Leader John Thune.

The bill's failure has been met with relief by some, who fear that its passage could have legitimized President Trump's substantial crypto holdings and created a conflict of interest. Virginia Canter, anti-corruption chief counsel, stated that 'Trump profits while the American public is left to wonder whether the cryptocurrency regulatory system is there to protect them or the monied interests of industry players like Trump's family and Steven Witkoff's sons.'

The Senate's rejection of the bill means that it will likely resurface in the future. The legislation could offer a cloak of legitimacy to Trump's crypto holdings, which have been under scrutiny.