The Digital Asset Market Clarity Act failed to secure the 60 votes needed to advance in the U.S. Senate, drawing a range of reactions from cryptocurrency industry executives.
The legislation’s defeat represents a setback for efforts to establish a statutory framework governing U.S. digital-asset markets. However, industry leaders largely focused their comments on what happens next rather than suggesting that regulatory progress has stopped.
Several executives pointed to ongoing initiatives at the Securities and Exchange Commission and Commodity Futures Trading Commission, which can continue regardless of the Senate vote. At the same time, some warned that agency rules do not provide the same permanence as laws passed by Congress.
The result also renewed comparisons with Europe, where the Markets in Crypto-Assets Regulation has provided a unified framework since December 2024.
Brad Garlinghouse: A Major Disappointment
Ripple CEO Brad Garlinghouse said the outcome was disappointing after extensive efforts by Ripple and other industry participants to move the legislation forward.
Garlinghouse said the bill represented an opportunity to establish rules for the broader industry and consumers while strengthening the U.S. role in the global financial system.
He called for an examination of the reasons behind the failure and criticized Democratic opposition to the legislation.
Garlinghouse nevertheless said the industry still has reasons to remain optimistic. He pointed to the SEC under Chair Paul Atkins and the CFTC under Chair Brian Selig, saying both agencies can continue developing rules to address gaps left by Congress.
He added that Ripple’s business remains active across traditional finance and digital assets and said the Senate vote does not change the company’s global operations or customer demand.
Connor Howe: Durability Is the Key Issue
Connor Howe, co-founder and CEO of Enso, said the failed vote does not erase regulatory initiatives already underway.
He cited Selig’s direction for CFTC staff to develop market structure rules using existing Commodity Exchange Act authority. Howe also noted that the SEC has already released its Regulation Crypto Assets proposal for public comment.
For Howe, the main consequence of the vote is the uncertainty surrounding the longevity of agency rules. A future agency chair can change an existing rule without requiring another Senate vote, whereas changing statutory law requires Congress to act again.
He also pointed to the absence of explicit Section 1960 protections for developers who do not control customer funds, saying statutory protection would have been harder to reverse.
Alex Blume: Legislative Delay Could Push Activity Elsewhere
Alex Blume, founder and CEO of Two Prime, said the vote removes the immediate prospect of comprehensive federal crypto legislation.
Blume argued that the lack of clear U.S. rules could encourage businesses to operate from other jurisdictions. He cited the FTX collapse in discussing the risks associated with offshore structures and argued that clearer domestic rules could provide a stronger environment for legitimate crypto companies.
He also noted the wide range of activities covered by the term “crypto,” from highly speculative tokens to stablecoins with global financial applications.
Blume expects SEC and CFTC rulemaking to address some of the issues that the Clarity Act was intended to resolve, including regulatory responsibilities and stablecoin treatment. However, he said those measures could still change under a future administration.
Barnali Biswal: Failure Was Already Expected by Markets
Barnali Biswal, CEO of Hilbert Group, said the Senate outcome should not necessarily lead to a major market sell-off because prediction markets had already priced in the possibility that the bill would fail.
She said the larger consequence was the loss of momentum around the legislation.
Biswal also highlighted opposition from major banking trade groups to the bill’s stablecoin yield language. In her view, the unresolved issue means institutional capital will continue operating within a fragmented regulatory environment.
Strategy: Bitcoin Already Has Regulatory Recognition
Michael Saylor’s Strategy said Bitcoin already has several forms of legal and regulatory recognition in the United States.
In an X post, the company pointed to the CFTC’s treatment of bitcoin as a commodity, the IRS classification of bitcoin as property, SEC approval of spot bitcoin products and the Financial Accounting Standards Board’s treatment of bitcoin as a GAAP asset.
Alan Konevsky: Market Development Continues
tZERO CEO Alan Konevsky said the Senate vote does not change what he described as the ongoing shift toward regulated digital-asset markets.
He cited proposed rules from both the SEC and CFTC and their efforts to coordinate jurisdiction over digital assets.
Konevsky said institutional adoption can continue because regulated digital-asset infrastructure is already being developed and used.
Frederik Gregaard: Europe Has a Defined Framework
Cardano Foundation CEO Frederik Gregaard pointed to Europe’s MiCA framework, which has been operating since December 2024.
He said European builders have a clearer set of regulatory requirements, while U.S. companies continue to face an unresolved federal framework.
Gregaard said blockchain development will continue because of its broader applications and argued that Europe currently offers a more defined regulatory environment for those developments.
Chainlink Labs: Need for Clarity Remains
Katherine Kirkpatrick Bos, head of legal at Chainlink Labs, said the Senate outcome was disappointing but did not reduce the need for regulatory clarity.
She said clear rules are important for consumer protection, institutional adoption and U.S. financial leadership.
Kirkpatrick Bos added that Chainlink Labs remains prepared to work with lawmakers to establish rules for digital-asset innovation.
NEAR: Next Congress May Take Up the Issue
Abhishek Vaidyanathan, chief legal officer at NEAR, said the next Congress may provide another opportunity to address market structure if the legislation does not advance during the current session.
He noted that the House has canceled its weeks beginning Sept. 21 and Sept. 28, while the Senate’s state work period begins Oct. 5, ahead of the Nov. 3 election.
Vaidyanathan said the absence of legislation would leave companies dependent on agency guidance and administrative decisions. He argued that this could create additional legal and planning uncertainty for businesses preparing their 2027 budgets.
He also contrasted the U.S. approach with MiCA in Europe, saying the U.S. lacks the statutory market structure framework that GENIUS established for stablecoins.
Matter Labs: Banking Development Continues
Vassilis Tziokas, VP of growth at Matter Labs, said the Senate vote changes the legislative timetable but not the broader development of blockchain infrastructure within banking.
He pointed to banks developing tokenized deposit networks that can move dollars onchain while deposits remain on bank balance sheets and continue to operate under existing banking regulations.
Tziokas said the same infrastructure is expanding into areas such as intraday repo, weekend collateral transfers and tokenized securities, with privacy becoming a core requirement.
He cited JPMorgan’s deposit token, Citi’s tokenized payment activity and efforts by regional and community banks. He also noted that Cari recently raised more than $30 million with bank backing to build an institution-controlled network.
With congressional legislation stalled, Tziokas expects SEC and CFTC rulemaking and guidance from banking regulators to play a larger role in the interim.
GSR: Attention Turns Back to Regulators
Joshua Riezman, chief legal and strategy officer at GSR, said the failure of comprehensive market structure legislation leaves regulators with a larger role.
He expects market participants to look to the SEC, CFTC and other agencies for practical rules and guidance.
Riezman also said other jurisdictions could move more quickly while the U.S. continues working toward a comprehensive framework, although he said the opportunity for American leadership in digital assets remains.
Across the industry, the reactions point to several unresolved issues: the lack of statutory market structure rules, continued agency-led policymaking, questions about the durability of regulatory guidance and the possibility that businesses will compare the U.S. framework with established regimes such as Europe’s MiCA.
