Exclusive / Senate Republicans say crypto bill likely to fail

The bipartisan cryptocurrency market structure bill, known as the CLARITY Act, is currently facing a high probability of failure in the United States Senate. According to an exclusive report from Semafor and additional reporting from Moomoo, Senate Republicans indicate the bill is likely to fail when the Senate returns for a key vote next week. The primary point of contention is a demand from Democratic lawmakers for specific ethics language that would cover the president and the president's family. Coverage from Moomoo notes that there has been little movement on this particular hang-up, creating a legislative stalemate as the vote approaches. Multiple industry figures and political actors are weighing in on the potential fallout. Senator Lummis has warned via reports from Bitbo and the Bitcoin Foundation that if the bill stalls now, U.S. crypto regulation could face years of delay, potentially not moving forward until 2030.

However, Senator Lummis also specified in CryptoRank that while Democrats could kill the bill, it would not fail solely over ethics concerns. Simultaneously, industry leaders are attempting to push the legislation through; Bitcoin News reports that Ripple's Legal Chief is actively chasing Democratic votes, while the Ripple CEO and a Coinbase executive have described the bill as a powerful package necessary for industry-wide clarity. The stakes for the legislation are highlighted by various institutional reactions. CoinDesk and unchainedcrypto.com report that the National Sheriffs’ Association has shifted its stance to neutral. This follows previous warnings from the association that the CLARITY Act could shield crypto-related crime. Meanwhile, the industry is pivoting toward public pressure tactics; Punchbowl News reports that pro-CLARITY Act advertising blitzes are being prepared.

Financial markets are also reacting, with TipRanks noting the Ripple CEO's comments as the price of XRP eyes a breakout at the $1.40 level. Observers are now focused on the specific legislative path required for the bill to move forward, a point emphasized by Belshe in Bloomberg.com. The primary indicator of the bill's fate will be the Senate's actions upon its return next week. Market participants are already considering contingency plans; Currently.com has published guidance on how to bulletproof crypto portfolios in the event the Act does not pass this year. The immediate focus remains on whether the Democratic demands for ethics language can be reconciled with the Republican position before the scheduled vote.