The markup process represented a key hurdle for the legislation, known as the Clarity Act, which still needs to pass out of the Senate Banking Committee before it can be considered by the full chamber. In a statement shared with Fortune, the watchdog group Public Citizen referred to the Clarity Act as the “gryfto” bill, referencing Trump’s personal gains from the industry. The bill, which would represent the most comprehensive financial reform in decades, faces uncertain odds in the broader Senate, as well as a difficult reconciliation process with the House of Representatives if it continues to move forward. Even so, its success in the Senate Agriculture Committee reflects the newfound sway the blockchain industry holds in Washington, D.C., where it is sitting on a campaign donation war chest of nearly $200 million to spend in the 2026 midterm elections.
President Trump, a key ally of the crypto industry, urged Congress to pass two bills after taking office last January. The first, a bill that created guardrails for dollar-backed cryptocurrencies, passed in July. The more ambitious Clarity Act, which would establish broader market structure rules for cryptocurrency issuance and trading, also passed in the House in July, though it is still awaiting full Senate support. Though the Clarity Act has garnered bipartisan support, including in the Senate Agriculture Committee, the bill debated at Thursday’s hearing represented only the Republican version.
Democrats voiced criticism over the bill’s treatment of decentralized finance, or DeFi, as well as ethics provisions that have long been a line in the sand. “The White House has made this infinitely harder,” said Sen. Cory Booker (D-N.J.), who has been leading the Democratic negotiations. An amendment that would create an ethics provision failed along party lines. The crypto industry continues to pour money into D.C., with the top-funded network of Super PACs, Fairshake, announcing on Wednesday that it has $193 million of cash on hand headed into the 2026 midterms, including nearly $75 million in new contributions from Coinbase, Ripple, and Andreessen Horowitz.
Whether the fresh coffers are enough to push the Clarity Act over the finish line remains to be seen. The Senate Banking Committee has yet to reschedule its markup session, with Coinbase still at odds with the banking industry over the question of stablecoin yields, which represent a significant chunk of its revenue. The pro-crypto lawmakers, however, seemed undeterred.
“We are in a point in American history that is exciting,” said Booker on Thursday. “We are seeing an innovation explosion going on because of blockchain technology.” Coinbase CEO Brian Armstrong pulled his support for the draft. The Senate Agriculture Committee advanced legislation that would provide far-reaching regulation for the crypto industry, though the vote only passed with Republican support.
The Clarity Act advanced in the Senate Agriculture Committee, signaling the growing influence of the blockchain industry in Washington and setting the stage for broader market rules on issuance and trading. While it has bipartisan support in some quarters, the measure still faces a challenging path through the Senate Banking Committee and a potential reconciliation process with the House if it moves forward. Democrats have raised concerns about how the bill handles decentralized finance and the ethics provisions tied to governance and market structure. The push reflects a broader effort to shape crypto policy as industry fundraising grows in the capital, with the largest networks of Super PACs and major donors guiding spending ahead of the 2026 midterms.
Proponents argue the Act would establish essential guardrails for crypto markets, while opponents warn against overreach that could stifle innovation. The policy debate remains fluid as lawmakers weigh the balance between innovation and investor protection, with the crypto ecosystem continuing to influence Washington’s regulatory agenda.
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