Key Points

  • The Senate did not move forward with the Clarity Act during a procedural vote on Tuesday.
  • Stand With Crypto will factor this vote into its evaluations of lawmakers.
  • The organization is committed to mobilizing its three million supporters for future legislative efforts.

Stand With Crypto, an advocacy organization supported by Coinbase, expressed concerns about potential electoral consequences on Tuesday after the Senate did not advance the Clarity Act.

Following the vote, Stand With Crypto released a statement indicating that they would incorporate the votes of senators into their scorecards ahead of the upcoming midterm elections in November.

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Mason Lynaugh, the executive director, remarked, “Today’s vote was a failure of leadership. 67 million Americans who own crypto have waited for years for the essential clarity needed to safely use, build, and invest in digital assets. Today, the Senate opted to keep them waiting.”

The unsuccessful cloture vote prevented the Senate from considering the bill, which aimed to set federal regulations for digital assets and allocate oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The proposal required 60 votes to proceed.

In a statement on X, the group noted, “Today, their Senators failed them, choosing to obstruct progress instead of serving their constituents. This November, crypto voters will show up and demonstrate their power at the ballot box.”

This setback followed last-minute discussions on ethics restrictions, protections for software developers, and oversight of crypto trading firms. After Republicans released revised legislation on Sunday, Democrats presented a counteroffer on Monday, leaving both parties divided prior to the vote.

Banking organizations have also advocated for stricter limits on stablecoin rewards, claiming that interest-like payments could draw deposits away from banks and hinder lending. Stablecoins are cryptocurrencies typically pegged to the U.S. dollar.

Stand With Crypto reported that its supporters contacted Congress nearly 50,000 times in August, alongside organizing local events and publishing opinion pieces in various newspapers. The initiative focused on senators in their home states during the congressional recess, while community bankers launched their own lobbying efforts.

The organization indicated it would score senators’ votes and include them in its public ratings that reflect lawmakers' stances on crypto policy. They also highlighted their endorsements of incumbent House candidates as part of their preparations for the midterms.

Lynaugh emphasized that their supporters had played a role in electing a Congress more favorable to crypto and would evaluate lawmakers based on their actions. The group aims to place the bill’s passage at the forefront of its election campaign.