Senator Cynthia Lummis said opposition to President Donald Trump contributed to the Senate’s failure to advance the Clarity Act, telling the crypto industry to “pin it on the Democrats.”
Lummis made the remarks Tuesday at CoinDesk’s Policy & Regulation event in Washington, D.C., where she described herself as “dismayed, dumbfounded and saddened” by last week’s failed procedural vote.
The senator said the crypto market structure bill had emerged from negotiations between Democrats and Republicans but argued that political opposition to Trump ultimately prevented lawmakers from moving it forward before the midterm elections.
“The problem was, as I see it, Democrats hate President [Donald] Trump more than they like good policy,” Lummis said.
The Clarity Act was intended to establish clearer regulatory boundaries between the Securities and Exchange Commission and Commodity Futures Trading Commission for crypto markets, including spot markets.
The procedural vote failed after every Democratic senator and three Republicans voted against it. Senator Thom Tillis, the fourth Republican, changed his vote to “no” at the last minute for procedural reasons.
Lummis said the bill had expanded from roughly 300 pages to more than 600 pages during bipartisan negotiations. She said Democrats had requested additional provisions, including protections related to bankruptcy.
She also rejected efforts to blame the vote’s failure on individual crypto executives or the industry. Lummis cited criticism of Coinbase CEO Brian Armstrong and Trump’s cryptocurrency activities as examples of explanations being offered after the vote.
Trump reported $1.4 billion in earnings from his various crypto ventures in 2025 in a mid-year financial disclosure released in 2026.
Lummis separately praised Democratic Senators Angela Alsobrooks and Kirsten Gillibrand, calling them “honest brokers” during negotiations. Gillibrand has been a longtime partner with Lummis on cryptocurrency legislation.
Lawmakers debate the path forward
House Financial Services Committee Chairman French Hill and Congressman Ritchie Torres also discussed the failed Senate vote during a separate session.
Hill said Clarity remained important because it could provide statutory certainty on questions involving the Howey test, fundraising and the treatment of software developers. He urged lawmakers to focus on finding a bipartisan route forward rather than dwelling on the failed cloture vote.
Torres said Trump’s crypto activities had created an additional political obstacle for Democrats. In his view, the legislation could have had a greater chance of bipartisan support without Trump’s involvement, although he acknowledged that several factors contributed to the Senate’s failure to advance the bill.
Torres specifically pointed to Trump’s personal memecoin as a source of political difficulty.
Hill also acknowledged that the memecoin “absolutely did poison the well of the debate” among Democrats. However, he noted that the token existed last year as well, when lawmakers from both parties advanced the GENIUS Act and the House passed its version of the Clarity Act.
Hill said lawmakers could face a different political environment after the midterm elections. He argued that Republicans and Democrats would need to cooperate if Congress wants to establish rules covering presidential involvement in crypto as well as broader oversight of the industry.
Torres said the core purpose of Clarity should be establishing crypto market rules, supporting fair and orderly markets and protecting consumers and investors. He said making the legislation primarily about Trump would shift the debate away from those policy objectives.
