Punchbowl said K Street was reacting mainly to the prospect of a split government after the midterm elections. Some lawmakers have suggested bipartisan crypto legislation could still be possible in that environment, but the outlet said it was doubtful, noting the bill had faced significant problems in the 119th Congress even when Republicans held unified control of government.
The latest reading is lower than earlier in the year. After the Senate Banking Committee markup, Punchbowl’s Canvass found that one-third (33%) of K Street leaders thought the bill was likely to pass both chambers this year.
Where the Bill Stands
The CLARITY Act passed the House on July 17, 2025, by a vote of 294 to 134, according to law firm Latham & Watkins’ US crypto policy tracker. The Senate Banking Committee advanced it 15 to 9 on May 14, 2026.
The bill then stalled on the Senate floor. According to law firm DLA Piper, the Senate failed to advance the bill on September 15, 2026, which it said nearly eliminated the possibility that a digital asset market structure bill would be enacted this year. Sumsub’s guide to the bill reports the procedural vote was 49 in favor and 50 against, short of the 60 votes needed to proceed.
A filing for a Winklevoss Zcash ETF with the US Securities and Exchange Commission notes that legislation not enacted during the 119th Congress generally has to be reintroduced when the 120th Congress convenes in January 2027, with no assurance that the CLARITY Act or similar legislation will become law.
As proposed, the bill would divide oversight of digital assets between the SEC and the CFTC, according to Sumsub. Passage would settle long-running questions over how digital assets are classified and supervised in the US.
Sources
Punchbowl News: Clarity Act outlook bleak in 120th session
DLA Piper: Senate fails to advance the CLARITY Act
Latham & Watkins: US Crypto Policy Tracker
