As negotiations stall, the market structure bill lacks sufficient support ahead of Tuesday's crucial Senate vote.
By Jesse Hamilton, Nikhilesh De10 min ago4 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Leading Clarity Act negotiator Senator Cynthia Lummis criticized Democrats for not making new proposals during discussions. (Jesse Hamilton/CoinDesk)SummaryShow- As the Senate nears a vote on the Clarity Act, there is no indication that a compromise will be reached.
- A counteroffer from Democrats has been met with resistance from Republicans.
The Digital Asset Market Clarity Act is struggling to secure the necessary votes for passage in the U.S. Senate ahead of a scheduled vote on Tuesday afternoon, with both parties expressing dissatisfaction with each other's positions.
Republican senators had released their version of the legislation over the weekend, claiming it was their final proposal. However, their efforts to reach a compromise were countered by a proposal from Democrats that failed to gain traction on Monday.
Senator Cynthia Lummis, a key Republican negotiator, stated, "Senate Democrats’ counter offer looks identical to their opening position at the start of recess," adding that "Democrats have not budged an inch" while Republicans have made significant concessions.
Lummis concluded, "If Democrats are serious about reaching a deal, they need to actually start negotiating instead of resubmitting the same demands and calling it progress."
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, remarked that the Republican proposal was not negotiated with Democratic input. "It was between the Republicans and the White House, and the changes were nonsense," Warren stated, criticizing the bill for not addressing the core issues effectively.
Analysts in Washington are predicting a difficult voting process on Tuesday. Beacon Policy Advisors noted, "With Democrats largely skeptical of the GOP’s latest offer, it’s unlikely they will provide the necessary votes to advance the bill later today, barring significant changes." They suggested that while Democrats could vote to advance the bill to keep negotiations open, the chances of that happening are slim.
As the clock ticks down to the 2:15 p.m. vote, there remains a possibility for last-minute agreements, but industry insiders are skeptical about the outcome. Coinbase CEO Brian Armstrong has argued that a failed bill would not halt regulatory progress.
At an industry event in Washington, White House crypto adviser Patrick Witt emphasized that the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have "robust" regulatory agendas for crypto. He stated, "They've got a job to do one way or the other. There's still good news coming for the industry."
Even SEC Chair Paul Atkins has acknowledged that the agency’s regulations require legislative backing to be permanent. Additionally, the CFTC lacks direct regulatory authority over crypto commodity spot markets, such as Bitcoin and Ethereum trading.
Some senators who oppose the Clarity Act may still vote in favor to keep the legislative process moving. The Senate's standard procedure for approving bills involves a multi-stage process, meaning an initial vote does not guarantee the bill's ultimate success.
Despite the focus on Democratic opposition, some Republican senators have expressed concerns about the Clarity Act if it risks threatening banks' interest-bearing deposits due to stablecoin reward programs. The banking sector indicated that the latest Republican proposal did not alleviate its concerns, creating further uncertainty about GOP support for the Clarity Act.
In response to bankers' concerns, the White House released economic data on Tuesday that suggested those worries were unfounded.
Jaret Seiberg, a policy analyst at TD Cowen, estimated a 60% chance of failure for the opening vote, suggesting that Democrats, including those supportive of crypto, might find the GOP's changes insufficient. He also noted that several Republicans might vote against the bill due to concerns over stablecoin yields and law enforcement issues.
The crypto industry is urging lawmakers to at least allow the legislative process to continue by voting in favor of the bill. A coalition of leading crypto lobbying groups stated, "A yes vote is critical and keeps the process moving. Doing so will ensure that senators have opportunities to debate and advance this much-needed legislation."
If the vote proceeds on Tuesday and fails, it could mark the end of the Clarity Act for this congressional session. With the potential for Democrats to regain the House majority in the upcoming November elections, any future crypto legislative efforts may fall under the influence of Democratic committee chairs.
In the absence of a viable crypto bill, Democrats may intensify their accusations of corruption against President Donald Trump and his administration. The industry's political action committees will need to decide whether to continue supporting some Democratic allies or treat them as political adversaries moving forward.
Read More: U.S. Senator Lummis says Democrats won't quit asking for more on crypto Clarity Act
Clarity ActRegulationRelated AssetsEthereum$2,428.153.18%Bitcoin$76,541.382.56%Latest Crypto News- 1European Central Bank calls for merchants to participate in digital euro pilot1 hr ago
- 2Clarity Act's odds of passing plunge as Republicans reject Democrats' counter-proposal1 hr ago
- 3A hacker turned 25 cents of bitcoin into 46 billion fake BTC tokens on a DeFi bridge2 hrs ago
- 4Standard Chartered predicts Arbitrum's ARB to rise 70-fold to $10, citing Robinhood Chain revenue2 hrs ago
- 5To ensure permanent economic innovation, we must pass the Clarity Act now4 hrs ago
- 6Ether, solana, XRP likely to gain if Clarity Act progresses4 hrs ago
- 7Why banks should stop worrying and learn to love the Clarity Act5 hrs ago
- 8Velocity extends Series A to $48M at $200M valuation with backing from Visa, Circle, and Ripple5 hrs ago
- 9Bitcoin gives back Monday's gain as Clarity Act odds fade on Polymarket5 hrs ago
- 10How a simple coding mistake let a hacker drain $7.8 million from a crypto wallet5 hrs ago
Tokenized Equities Lead RWA Inflows as bStocks Sets the Pace
Tokenized Equities Lead RWA Inflows as bStocks Sets the Pace
Tokenized equities lead RWA inflows as the market recovers; Binance's bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.
By CoinDesk ResearchAug 27, 2026Tokenized equities lead RWA inflows as the market recovers; Binance's bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.
Why it matters:
Tokenized equities lead RWA inflows as the market recovers; Binance's bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.
View Full ReportMore From Policy