The crypto industry’s push for comprehensive U.S. market structure legislation suffered another setback Tuesday when the Digital Asset Market Clarity Act failed to obtain the 60 votes required to advance in the Senate.
Industry executives responded with a mix of disappointment and calls to continue working through regulators and lawmakers. Several said the failed vote does not halt the regulatory initiatives already being pursued by the Securities and Exchange Commission and Commodity Futures Trading Commission.
The bigger unresolved issue, according to several executives, is whether agency-led rules can provide lasting certainty. Regulations adopted by federal agencies can be changed by future administrations, whereas statutory requirements would require Congress to pass new legislation to be amended or repealed.
Some executives also pointed to Europe’s Markets in Crypto-Assets Regulation, or MiCA, which has been in force since December 2024. They said the difference between the U.S. and European approaches could influence where digital-asset businesses choose to operate.
Ripple CEO Brad Garlinghouse
Brad Garlinghouse said the result was disappointing after Ripple and other industry participants had invested substantial effort in trying to get the legislation across the finish line.
He said the bill was intended to establish rules for consumers and businesses while strengthening the United States’ position in the global financial and technology markets.
Garlinghouse called for a review of the reasons the legislation failed and criticized Democratic opposition to the measure.
He nevertheless said the industry has reasons to remain optimistic. He pointed to the SEC under Chair Paul Atkins and the CFTC under Chair Brian Selig, saying both agencies can continue developing rules to address the regulatory gap.
Garlinghouse added that Ripple continues to see demand from traditional finance and the digital-asset sector and said the Senate vote does not change the company’s broader business momentum or international presence.
Enso CEO Connor Howe
Connor Howe said the failed Senate vote does not erase regulatory initiatives already underway.
He cited Selig’s instruction to CFTC staff to develop market structure rules under existing Commodity Exchange Act authority. Howe also pointed to the SEC’s Regulation Crypto Assets proposal, which was released for public comment in August.
The main concern, he said, is permanence. A future agency chair can change an agency rule without another Senate vote, while changing statutory protections requires Congress to pass another law.
Howe also highlighted the bill’s proposed Section 1960 protection for developers who do not handle customer funds. Without that protection being written into law, he said, developers could remain exposed to changes in agency policy.
Two Prime CEO Alex Blume
Alex Blume said the Senate result effectively removes the short-term prospect of comprehensive crypto legislation.
He argued that continued regulatory uncertainty could encourage companies to establish operations in other jurisdictions. Blume pointed to the FTX collapse as an example of how offshore structures and regulatory gaps can interact, arguing that clearer U.S. rules could provide a stronger foundation for legitimate businesses.
Blume also emphasized the diversity of the crypto sector, saying the term covers everything from speculative memecoins to large-scale stablecoin systems.
He expects the SEC and CFTC to continue developing rules covering issues the Clarity Act was intended to address, including the division of regulatory responsibilities and treatment of stablecoins. However, he noted that agency rules remain vulnerable to changes in administration.
Hilbert Group CEO Barnali Biswal
Barnali Biswal said the failed vote should not necessarily produce a sharp market decline because prediction markets had already reflected the possibility that the legislation would not pass.
She said the more significant effect was the loss of momentum.
Biswal also pointed to lobbying by major banking trade groups over the bill’s stablecoin yield provisions. Without the compromise, she said, institutional investors may continue to face a fragmented and enforcement-focused regulatory environment.
Strategy Points to Existing Bitcoin Rules
Michael Saylor’s Strategy said the Senate vote does not mean Bitcoin lacks regulatory recognition in the U.S.
The company said on X that the CFTC has long classified bitcoin as a commodity, the IRS treats it as property, the SEC has approved spot bitcoin products and the FASB recognizes bitcoin as a GAAP asset.
tZERO CEO Alan Konevsky
Alan Konevsky said the broader move toward regulated digital-asset markets is continuing despite the Senate result.
He pointed to proposed initiatives from the SEC and CFTC and their efforts to coordinate oversight of digital assets.
Konevsky said institutions are likely to continue adopting digital-asset infrastructure because regulated systems are already available and being developed.
Cardano Foundation CEO Frederik Gregaard
Frederik Gregaard highlighted the contrast between the U.S. and Europe.
He said companies operating under MiCA have had a defined regulatory framework since December 2024, while U.S. lawmakers have yet to establish comparable market structure legislation.
Gregaard said blockchain development will continue because of its broader utility and suggested that companies may look to jurisdictions where regulatory requirements are already established.
Chainlink Labs Legal Chief Katherine Kirkpatrick Bos
Katherine Kirkpatrick Bos said the Senate result was disappointing but did not reduce the need for clear digital-asset rules.
She said regulatory clarity remains important for consumer protection, institutional adoption and U.S. financial leadership.
Kirkpatrick Bos said Chainlink Labs remains committed to working with lawmakers to establish rules supporting digital-asset innovation.
NEAR Chief Legal Officer Abhishek Vaidyanathan
Abhishek Vaidyanathan said the next Congress could become the next opportunity to address market structure legislation.
He pointed to the House’s cancellation of its weeks beginning Sept. 21 and Sept. 28 and the Senate’s state work period beginning Oct. 5, before the Nov. 3 election.
Vaidyanathan said companies without statutory market structure rules would remain dependent on agency guidance and administrative discretion. He argued that this could prolong legal uncertainty for businesses planning their 2027 operations and budgets.
He also contrasted the U.S. system with Europe’s MiCA framework, saying the Clarity Act would have provided statutory support for the broader crypto market similar to the foundation GENIUS created for stablecoins.
Matter Labs VP Vassilis Tziokas
Vassilis Tziokas said the Senate vote affects the timing of U.S. legislation but not the broader development of blockchain-based banking infrastructure.
He pointed to banks building tokenized deposit networks that can move dollars onchain while keeping deposits on their own balance sheets under existing banking rules.
Tziokas said these systems are also expanding into intraday repo, collateral transfers and tokenized securities, with privacy incorporated into their design.
He cited JPMorgan’s deposit token, Citi’s tokenized payment activity and projects involving regional and community banks. He also noted that Cari had raised more than $30 million with backing from banks.
With legislation delayed, Tziokas expects SEC and CFTC rulemaking, along with banking-agency guidance, to carry more of the regulatory burden in the meantime.
GSR Chief Legal and Strategy Officer Joshua Riezman
Joshua Riezman said the failure to advance comprehensive legislation means the crypto sector will increasingly look to federal regulators for practical rules and guidance.
He said the SEC, CFTC and other agencies will now face greater expectations to provide the clarity market participants need.
Riezman also said jurisdictions outside the U.S. have an opportunity to move faster in establishing digital-asset frameworks while American lawmakers remain divided over market structure.
Across the responses, executives highlighted different consequences of the Senate vote, but several themes emerged: regulatory work at federal agencies is expected to continue, questions remain over the permanence of agency rules, and companies continue to compare the U.S. environment with established frameworks such as MiCA.
