The crypto industry is very skeptical about Democrats’ plans to restart talks over the stalled CLARITY Act.
On Wednesday, the moderate Democrats, led by Kirsten Gillibrand and Ruben Gallego, maintained that they have worked for two years to pass the legislation.
The group insisted that they were committed to new bipartisan talks to finish the work.
This week was a setback, but not the end of that important work. We remain committed to working in a bipartisan fashion to get this legislation passed.
According to reporter Eleanor Terrett, the move followed a behind-the-scenes effort to reignite talks and fast-track the crypto legislation before the end of the year.
For some pro-crypto analysts such as Nate Geraci, however, these were “all talk” with no action. Geraci said that Democrats are anti-crypto and may not change soon.
All talk at this point…There was no ‘working in a bipartisan fashion’ on crypto during the Biden admin. It was purely anti-crypto & regulation by enforcement. So it’s all talk. Actions speak louder than words.
The bill failed with a 49-50 vote after Democrats blocked the procedural step needed to advance the bill. Interestingly, the seven so-called moderate Democrats were expected to back the bill and hit the 60-vote threshold. But no Democrats voted for the bill, citing limited ethics provisions.
SEC, CFTC pledge rulemaking after CLARITY Act stalls
In fact, the market was not expecting the bill to pass in 2026, 2027, or 2028. There was less than a 30% chance of passage in the next two years. Similarly, JPMorgan analysts believe the bill is not dead yet, but there is a narrow window for passage.
Whatever the outcome, the SEC and CFTC leaders have vowed to fast-track rulemaking to ensure clear rules for the sector. SEC chair Paul Atkins reinforced that,
I have been unequivocal: with or without legislation, we will act decisively within the SEC’s statutory authority to deliver certainty for American investors.
This will be a temporary fix for the industry after a collective call to accelerate rulemaking after the crypto bill stalled.
Whether the next administration will reverse these upcoming rulemakings remains unclear.
Final Summary
- Seven Democrats said they were committed to renewed bipartisan talks to restart the stalled crypto bill.
- There was less than a 30% chance of the bill’s passage into law in the next two years.