ALBAWABA - A major U.S. measure to establish up a comprehensive regulatory framework for cryptocurrencies and electronic assets has been held up in the Senate despite a multimillion-dollar lobbying push by the crypto sector to get it thru.
Before leaving Washington for summer holiday, senators were scheduled to move the proposed CLARITY Act, which sets ground rules for cryptocurrency corporations, to the Senate floor. But after months of discussions the vote was postponed, and Senate Republican Leader John Thune said the legislation is now scheduled to return in September.
The delay comes as the cryptocurrency sector has reportedly spent over $225 million on political donations and lobbying efforts since President Donald Trump returned to office in January 2025. According to a Financial Times study, the business spent more than $185 million on election-related spending and another $40 million on lobbying in Washington.
The House passed its version of the bill last year, but some Senate Republicans are still hesitant, citing fears from the banking industry that crypto accounts with higher rates and benefits could draw clients away from traditional banks.
The proposal has also become enmeshed in wider political battles over Trump’s own encryption efforts. Democratic lawmakers want to add ethics restrictions that would bar public officials, including the president, from promoting or benefitting from digital property while in office.
Industry experts cautioned that any delays might bring back the stricter regulatory climate that existed under previous SEC Chair Gary Gensler. Coinbase CEO Brian Armstrong encouraged Congress to provide the industry with clear legislative certainty, saying “millions of Americans now own digital assets of their own.”
