The CLARITY Act, a big crypto bill that would clarify how digital assets are classified under law, passed the House in July but has yet to receive a vote in the Senate.
Many Bitcoin and crypto-enthusiasts were sure this would be the catalyst to bring the on-chain world to the masses. But since then, Wall Street’s biggest banks have dragged their feet on the bill, and even Coinbase CEO Brian Armstrong pushed back on key pieces of the legislation. The path forward is anything but clear.
Worse, Bitcoin and the rest of the crypto market have been in a bloody tailspin. In early October, months after the CLARITY Act passed the House, Bitcoin dropped from its peak of $125,000 to lows of $60,000, trading as if the bill would never become law. All in all, October 10-11 saw over $19 billion in leveraged positions wiped out. To put that into perspective, the FTX collapse in November 2022 triggered roughly $1.1–1.9 billion in 24?hour futures liquidations.
And it remains to be seen if the CLARITY Act will have its day. The Senate Banking Committee markups were scheduled for January 15 and January 27, 2026, but all were cancelled without a new date. The Senate Agriculture Committee advanced its portion of related market structure legislation along party lines (12-11), but it covered only CFTC-related elements and did not indicate the final passage of the CLARITY Act itself.
There is no confirmed upcoming markup or vote date for the Senate Banking Committee’s consideration, leaving the CLARITY Act more up in the air than ever before. Worse for the crypto bros, with the 2026 midterm elections approaching — and few if any Democrats prepared to vote in favor of the legislation — if it doesn’t get done before then, it may not happen at all.
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Coinbase (COIN) is among the companies feeling the impact. A significant portion of its revenue comes from stablecoin reward products, which the bill, as written, would restrict by limiting stablecoin yield. Those products have generated roughly $1.3 billion in 2025.
Circle (CRCL), issuer of the USDC stablecoin, is also under pressure. The stock is down about 80% from its all-time high, now trading at $62.50, as the lack of regulatory clarity continues to cloud the legal status of stablecoins in the U.S.
So the status quo of regulatory limbo remains. But CFTC Chairman Mike Selig has rushed to assure crypto-world that Congress is going to get the bill over the finish line.