The Digital Asset Market Clarity Act (CLARITY Act) recently suffered a major legislative setback in the US.

Written By Thapabibas730 .

Current Status and Senate Vote

  • The Defeat: On September 15, 2026, the Senate narrowly voted down the cloture motion to advance the bill, failing in a 49 to 50 vote (falling short of the required 60 votes).

  • Why it Stalled: Rather than disagreements solely over the SEC and CFTC jurisdiction split, the bill ran into heavy friction over attached ethics provisions and tight legislative calendars ahead of the upcoming midterms.

  • Is it Dead? Not entirely. Bipartisan lawmakers and industry advocacy groups are pushing for a rewrite or a potential window during a post-election lame-duck session, though overall odds for 2026 passage remain low.

What This Means for the Market

  • Shift to Regulation by Agencies: With federal statutory reform paused, the burden of digital asset oversight defaults back to federal agencies like the SEC and CFTC through individual rulemakings, exemptions, and no-action relief.

  • Market Reaction: Following the Senate's rejection of the bill—which would have instituted stricter controls and prohibitions on certain stablecoin yield mechanisms—major cryptocurrencies experienced an initial relief rally.

  • Political Shift: Advocacy groups like Stand With Crypto have already shifted their focus toward the upcoming midterm elections, endorsing key Senate candidates to build a stronger pro-crypto legislative base for future sessions.

Yesterday (September 30, 2026), things shifted from major structural market bills to heavy focus on digital asset tax reform and new Senate proposals:

  • The ADAPT Act Introduced: Senate Republicans formally introduced a comprehensive 56-page crypto tax bill (known as the ADAPT Act) aimed at clearing up grey areas around staking, mining rewards, and wallet transactions.

  • De Minimis Tax Exemptions: Building on recent House Ways and Means committee markups for the Digital Asset Tax Certainty Act (H.R. 10357), momentum has built around creating a small-transaction exemption so everyday users don't have to trigger complex capital gains filings just for paying minor network/gas fees.

  • ETF Flow Shifts: Bitcoin investment products and crypto ETFs saw a minor cool-down and reversal in daily inflows, with US spot funds experiencing around $148.7 million in net outflows as the markets wrapped up the month.

Thapabibas730 .