While top leaders of cryptocurrency and fintech firms are disappointed that the Senate failed to pass the CLARITY Act, U.S. Senators who voted against the bill have their own reasons.
- Coinbase’s Brian Armstrong said that crypto regulation can no longer wait on Congress, arguing the SEC and CFTC can now establish clearer rules under existing authority.
- Mike Novogratz, founder and CEO of Galaxy Digital, said in a post on X that the government “feels broken” after the CLARITY Act failed to pass.
- Sen. Thom Tillis, who switched his vote from “Yes” to “No,” said the CLARITY Act’s Senate setback was “not the end,” adding that bipartisan negotiations would continue toward a positive outcome.
The CLARITY Act, a key bill to regulate digital assets, failed to advance in the Senate on Tuesday, falling short of 10 votes to reach the 60-vote threshold required to move the legislation forward.
Formally introduced in the U.S. House of Representatives in May 2025 to establish a regulatory framework for digital assets and provide more legal clarity to the sector, it has attracted hundreds of millions of dollars in efforts to advance it.
While top leaders of cryptocurrency and fintech firms are disappointed by its fallthrough, U.S. Senators who voted against the bill — which missed its July 4 target for passage — have their own reasons.
Coinbase CEO Disappointed With CLARITY Failure
Brian Armstrong, co-founder and CEO of Coinbase Global Inc. (COIN), a major cryptocurrency platform, expressed disappointment that the legislation failed to clear the Senate.
In a post on X, Armstrong said that crypto regulation can no longer wait on Congress, arguing the U.S. Securities and Exchange Commission (SEC) and U.S. United States Commodity Futures Trading Commission (CFTC) can establish clearer rules under existing authority.
“So clarity is coming to crypto regardless,” he said, adding that “Crypto can’t be uninvented. With clarity emerging through the regulators, we’ll continue updating the financial system.”
In a separate post, he highlighted that U.S. Senators had two choices ahead of them: to vote ‘Yes’ on the CLARITY Act to promote innovation, protect consumers, put new ethics restrictions on elected officials, and create new law enforcement tools to combat illicit finance, or to vote ‘No’ and let other countries lead in building the future of finance. “History – and the crypto voter – won’t forget,” he said.
What Other Top Fintech Leaders Are Saying
Mike Novogratz, founder and CEO of Galaxy Digital Inc. (GLXY), said in a post on X that the government “feels broken” after the CLARITY Act failed to pass.
He noted that a bipartisan proposal that was proposed could have worked but “got hi-jacked in the politics of it all.”
Echoing Armstrong’s views, Novogratz said he was “very disappointed” that Democrats and Republicans could not find a way to bridge the gap, adding he does not believe cryptocurrencies and the bill will crack even the top 10 issues in the upcoming mid-term elections.
“I do have faith that the SEC and CFTC will drive on with rules for the road and hopefully in time Congress will find a way to memorialize them so people can have a longer term confidence in how digital assets will be treated in the US,” he said, adding that, “We go back to work tomorrow. And continue building.”
Ripple CEO Brad Garlinghouse said in a post on X that the act’s failure to pass“stings” after the crypto industry“gave everything” to get the CLARITY Act across the finish line. He said the act was an opportunity for consumers and the U.S. to cement its position as the crypto capital of the world and a leader in the future of finance.
“Ultimately, consumers and U.S. competitiveness got left behind,” he said, adding that the failure warranted a “post-mortem.” However, he also reiterated that the SEC and CFTC will now need to continue to “work hard” to fill the legislative gap.
Kaz Nejatian, CEO of Opendoor Technologies Inc. (OPEN) also weighed in, calling the outcome “Madness” in a post on X. He said, “This is like the candlemakers convincing government to ban both the sun *and* electricity.”
Still Some Clarity Left?
Coinbase’s Chief Policy Officer Faryar Shirzad said in a post on X that the Senate’s failure to pass the bill has provided a “different type of clarity.”
“It’s time for agencies to step forward and for crypto voters to make their voice heard,” he said.
Meanwhile, Strategy’s (MSTR) Michael Saylor commented in a post on X that, despite the Act’s failure, “The only clarity you need is Bitcoin.”
Although Bitcoin (BTC) prices fell after the vote, the world’s largest cryptocurrency is still up 20% over the past month, according to data from TradingView.
Chairman and CEO of Strive Inc. (ASST) Matt Cole noted in a post on X that while the CLARITY not passing bodes poorly for the U.S. and for cryptocurrencies at large, he believes “this is good for Bitcoin.” He did not provide further explanations.
Senators Explain Their ‘No’ Votes To CLARITY
Apart from Democrats, four Republican senators, Jerry Moran, Susan Collins, Josh Hawley and Thom Tillis, joined the Democrats in voting against the bill.
Sen. Tillis (R-N.C.) said in a post on X that the bill’s failure to pass was not the end for the CLARITY Act. “We’ve made substantial bipartisan progress in large part because of the White House. This procedural motion allows us to continue working towards a positive outcome,” he said. Tillis switched his vote from ‘Yes’ to ‘No’ in a procedural move that could allow him to bring the bill back up for reconsideration later.
Sen. Michael Bennet (D-Colo.) defended his move to vote against the bill, saying that it fails to “rein in the President’s rampant corruption, letting him and his family continue amassing billions from unethical crypto ventures.”
U.S. President Donald Trump has made more than $1 billion from various crypto businesses before he was sworn in as POTUS last year. Trump has defended his massive crypto holdings and ventures by stating there is “nothing illegal” about them and has also asserted that he does not personally manage his investments
“I’ve long called for real guardrails on cryptocurrency to restore Americans’ trust in our political institutions and ensure no federal official can profit from their position of power. I cannot support legislation that falls short of that goal,” Bennet said.
Sen. Elissa Slotkin (D-Mich.) said she voted ‘No’ on the bill, saying the ethics provisions were “simply too thin,” echoing Bennet’s concerns about Trump profiting from the crypto space. She added that she believes the bill includes strong, bipartisan provisions that could serve as a foundation for future attempts to provide the crypto industry with essential guardrails. “I believe that the U.S. should lead the world in cryptocurrency innovation, but we need to get it right. I remain open-minded to that work ahead,” she said in a post on X.
CLARITY Act Setback: Analysts Weigh In
James E. Thorne, Chief Market Strategist at Wellington Altus, commented in a post on X in line with many of the top crypto CEOs, saying that while the collapse of the CLARITY Act is a setback for crypto regulation, the SEC and CFTC can still establish clearer rules under existing authority. He said that the U.S. has an opportunity to lead the digital-asset industry as other countries develop their own regulatory frameworks. Congress may have delayed reform, but the technology and broader shift toward onchain finance are continuing.
“The fundamentals for Bitcoin remain strong. In a world drowning in excessive sovereign debt, persistent fiscal deficits, and currency debasement, the thesis for digital gold has not changed. Bitcoin’s fixed supply, global liquidity, and independence from political discretion give it a role that increasingly resembles a modern monetary hedge,” he said, adding that “Investors do not need to believe Bitcoin will replace the dollar to recognize its value as protection against the deterioration of fiat purchasing power.”
Compass Point Research & Trading analyst Ed Groshans believes the bill will likely be tabled until at least 2030, according to a report from Barron’s. “The inability to reach a negotiated solution means that Congress is not likely to pass a digital asset market structure bill during the lame duck session or in the next Congress, he reportedly wrote.
Cryptocurrency skeptic Gordon Johnson, who heads GLJ Research, said in a post on X, “As a reminder #bitcoin & ALL crypto = ZERO value b/c: 1) the tech solves no real problem (it’s pure speculation) 2) it can’t be used as a real currency (fixed supply) 3) all are unregistered securities & 4) private currencies have been tried before and ALWAYS BEEN a DISASTER.”
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