From Pymnts · PYMNTS · · 1m 30s
Crypto's Clarity Act collapses in blame game
The failure of landmark digital assets legislation triggers finger-pointing between crypto executives and lawmakers over who derailed the deal.
In brief
The failure of landmark digital assets legislation triggers finger-pointing between crypto executives and lawmakers over who derailed the deal. Brian Armstrong's veto power over the Clarity Act frustrated negotiations and ultimately contributed to the bill's Senate defeat, leaving the crypto industry fractured…
Clarity Act fails in Senate
The digital assets bill collapsed in the Senate earlier this month, immediately triggering a wave of finger-pointing among crypto executives and lawmakers over who was responsible.
Armstrong's outsized influence
Coinbase CEO Brian Armstrong visited Washington 13 times and held weekly industry calls, wielding veto power over bill provisions he opposed. Sources say few figures besides Trump had more influence over the legislation.
Coinbase yanked support in January
Armstrong withdrew Coinbase's backing for the Clarity Act in January after identifying problematic provisions. Ripple's CEO said the industry "shot ourselves in the foot" by losing momentum at that critical moment.
“Then one group in our industry kind of shot ourselves in the foot.”
Democrats cited Trump concerns
Some lawmakers pointed to ethics concerns about President Trump's ties to the crypto sector as a reason to oppose the bill, complicating negotiations.
Congress lost focus on crypto
Other industry figures blamed the bill's failure on Congress shifting priorities to the Iran war, inflation, and artificial intelligence before the legislation could pass.
Stablecoins become default asset
With the Clarity Act dead, stablecoins are now the presumptive regulated U.S. digital asset, shifting the crypto sector toward embedding itself in traditional finance rather than replacing it.
The key point
Brian Armstrong's veto power over the Clarity Act frustrated negotiations and ultimately contributed to the bill's Senate defeat, leaving the crypto industry fractured.
