TLDR
- The US Senate failed to advance the CLARITY Act 49-50, falling short of the 60 votes needed
- Coinbase CEO Brian Armstrong says regulatory clarity will now come through the SEC and CFTC instead
- No Democrats voted for the bill; four Republicans also voted against it
- The SEC recently granted a five-year exemption allowing US trading venues to offer tokenized stocks
- Coinbase stock rose more than 2% in premarket trading after Armstrong’s comments
The US Senate voted 49-50 on September 17 to block the Digital Asset Market Clarity Act, known as the CLARITY Act, from advancing. The bill needed 60 votes to move forward.
Brian Armstrong On The Failed Clarity Act
0:25 Why the final Clarity Act draft was a good bill
1:43 What actually killed the Clarity Act
5:25 Is the Clarity Act dead for good?
7:42 Did the banks shoot themselves in the foot on stablecoin rewards?
9:26 What the SEC and CFTC can… pic.twitter.com/hZpCJpHpQG— The Wolf Of All Streets (@scottmelker) September 17, 2026
No Democrats supported the measure. Four Republican senators also voted against it. Senator Thom Tillis voted against in a procedural move that may allow the bill to be brought back later.
Coinbase CEO Brian Armstrong responded quickly after the vote, saying the industry would not wait on Congress.
“The SEC and CFTC have the tools they need to create clear rules under existing authority,” Armstrong wrote on X. “Clarity is coming to crypto regardless.”
What the CLARITY Act Would Have Done
The bill aimed to create the first federal framework for digital assets in the United States. It would have set out which agency, the SEC or the CFTC, oversees which parts of the crypto market.
The House passed an earlier version of the bill in 2025. Supporters said it would bring more institutional money into crypto and keep innovation inside the US.
With the bill stalled, comprehensive legislation is now unlikely to pass before the November midterm elections.
Regulators Already Moving Forward
Armstrong pointed to the GENIUS Act, already signed into law, which establishes a framework for stablecoins. He said that law is more permissive on rewards than some provisions in the CLARITY Act.
The SEC recently granted a five-year exemption allowing US trading venues to offer tokenized stocks. Public companies must receive 30 days notice before trading begins.
Last week, the CFTC approved predictions market Kalshi to list perpetual futures tied to precious metals. Coinbase is also looking to list perpetual futures tied to stocks and indexes.
Armstrong said both agencies had already signaled they were ready to publish new rules.
Armstrong’s Take on the Outcome
Armstrong said the bill’s failure might not be entirely bad for Coinbase. He argued that legislation would have brought more competition from large Wall Street firms.
“In a way, it arguably could even be better for us,” he said.
He also acknowledged that Coinbase had made concessions during negotiations that were difficult to accept, suggesting the current path through regulators could work out better.
Devin Ryan, head of financial technology research at Citizens Bank, said the bill’s failure could actually speed up near-term crypto regulation.
Coinbase stock was up more than 2% in premarket trading on Friday, and closed the day up more than 5%.
Armstrong’s message signals a shift in strategy. After years of pushing for a congressional solution, Coinbase is now backing a regulatory path through the SEC and CFTC.
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