Senate Fails to Advance CLARITY Act Amid Regulatory Progress
The CLARITY Act has failed to advance in the Senate by a vote of 49-50. According to Faustine Fleuret, global head of public affairs at DeFi lending protocol Morpho, this outcome does not necessarily mean that the Senate is against regulating crypto.
Fleuret explained that the Senate declined to invoke cloture on the motion to proceed due to disagreements over ethics rules for elected officials. This setback is considered 'real but partial' by Fleuret, who points out several recent federal actions that demonstrate a willingness to regulate the space.
The SEC's Regulation Crypto Assets and an innovation exemption for trading tokenized NMS stocks are two examples of regulatory frameworks being put in place. Commissioner Hester Peirce's July 2026 statement on crypto vaults and onchain lending strategies also highlights the agency's engagement with the sector.