The essence of this legislative struggle is who will pen the CLARITY bill.

Written by: Cleve Mesidor

Translated by: Chopper, Foresight News

This year's heated debate over the digital asset market structure bill (CLARITY bill) is not aimed at completely rejecting the bill. The essence of this legislative struggle is who will draft the bill.

Even Senator Elizabeth Warren, who is viewed by the industry as the biggest opponent of cryptocurrency, wishes to participate in the rule-making. In fact, since the Senate version of the bill was rejected in January this year, the list of groups wanting to participate in drafting the bill has been constantly increasing.

On December 11, 2025, Wells Fargo President and CEO Charles Scharf (right) leaves after meeting with Senate Banking Committee members at the U.S. Capitol Visitor Center

Coinbase CEO Brian Armstrong recently stated in a social media post: "In January of this year, I opposed submitting the bill draft for committee vote, as the draft still had many areas to improve in terms of decentralized finance (DeFi), tokenization, Commodity Futures Trading Commission (CFTC) jurisdiction, and stablecoin yield-related clauses. At that time, the draft had serious flaws that would harm the interests of the crypto industry; support from various parties was fractured, making it impossible for the bill to pass. We collaborated with multiple parties to amend the bill, making it passable. About four months later, the revised draft submitted for committee review corrected all four issues I previously raised. I am proud of this work, and if it were to happen again, I would do it the same way because it led to a better quality bill. This is just one step in a long process."

Ironically, the response from many stakeholders to Armstrong's January actions has generally been "We also want to participate in the revisions." Various institutions are emerging, claiming they want to work together to make the bill "better."

Conflicting Demands from Multiple Parties

Banks were the first to express opposition to the modification plan pushed by Armstrong, which led to the White House hosting several small summits, inviting crypto firms and bank executives to attend.

Next, law enforcement agencies raised objections, expressing concerns about developer protection clauses and illegal financial risks.

Disclosure documents released in June revealed that President Trump has $1.4 billion in cryptocurrency asset profits, which significantly increased calls for ethical clauses in the bill from both parties.

Experts in the regulatory field also continuously warned that the CFTC and the SEC both face issues with vacant commissioner seats.

The political tug-of-war between the legislative and executive branches in the crypto legislative process is also affecting the overall judgment of this emerging industry.

Despite this, bipartisan members of the Senate Banking Committee and the Agriculture Committee are still negotiating, trying to find a compromise solution to push it forward.

On July 16, 2025, Blockchain Association CEO Summer Mersinger (center) attends a hearing of the House Fundraising Oversight Subcommittee, themed "Building a Global Crypto Capital: Establishing a 21st Century Digital Asset Policy," held at the Longworth House Office Building

What Will Happen Next?

The final vote on the CLARITY bill has failed for nearly two weeks, and the wounds of various parties have yet to heal. The opposing policy advocates are still reviewing the situation, all claiming the goal is to improve the CLARITY bill.

Some are looking towards the lame-duck Congress after the midterm elections, hoping to restart the bill. Others hope that financial regulatory agencies will issue regulations directly to fill the regulatory gaps. There is also a viewpoint that believes the bill is completely dead.

However, most stakeholders have privately formulated plans for the next Congress. Regardless of whether the Democrats can regain the House or control both chambers, various external factions need stronger bipartisan strategies and means.

The Bank Policy Institute (BPI) has explicitly stated in its statement regarding the final vote on the CLARITY bill that its member institutions will not back down: "The banking industry across the nation still supports the establishment of a robust, enduring regulatory framework for digital assets, which will lay the foundation for America's global leadership in the coming decades. We believe that Congress can achieve this goal while also ensuring that bank credit activities that support economic growth are protected. As lawmakers consider subsequent actions, we suggest targeted adjustments to stablecoin yield-related policies. We are ready to collaborate with all stakeholders to accomplish this important goal."

The crypto industry association has also stated that it will continue to advance. Blockchain Association CEO Summer Mersinger announced last Friday that she will soon step down, and the association's founding leader Kristin Smith will return as interim CEO. After the vote, Summer Mersinger stated: "The work to introduce long-awaited consumer protection clauses and clear regulatory rules for U.S. digital asset users and entrepreneurs is not over. Tens of millions of Americans hold digital assets, yet builders in the U.S. still lack clear federal regulations; whereas Europe, the UK, Singapore, the UAE, and Japan have all established their own regulatory frameworks... We will not stop until the U.S. industry has clear regulatory rules."

On December 11, 2025, Senator Raphael Warnock (D-GA, left) meets and shakes hands with Thom Tillis (R-NC) while on their way to meet with bank executives at the Capitol Visitor Center

Key Republican Negotiators Depart

Unfortunately, several key officials who have played a bridging role in crypto policy and regulatory debates over the past decade are about to leave Washington.

Senator Thom Tillis from North Carolina will not seek a third term and will leave office at the end of the year. He negotiated a yield-related compromise with Maryland Democratic Senator Angela Alsobrooks and collaborated with Arizona Senator Ruben Gallego to push the White House to include stronger bipartisan ethical clauses.

Wyoming Senator Cynthia Lummis has chosen not to run for the next six-year term, stating that she will return to her ranch. Lummis has served as the chair of the Senate Banking Committee's Digital Assets Subcommittee, leading the legislative work of the CLARITY bill. She has a reputation for bipartisan collaboration, having previously worked with New York Senator Kirsten Gillibrand to promote the GENIUS bill. Her departure will be challenging to fill.

The core regulatory agencies corresponding to the CLARITY bill also face personnel shortages. SEC Commissioner Hester Peirce's term ends this Friday, and she is set to return to academia. Since 2018, she has been an influential figure in the crypto regulation field. Before leaving on October 2, Peirce posted on X platform last week, stating: "A subtle yet crucial task for regulators is to maximize the public's freedom to make optimal choices for themselves and their families within a reasonable regulatory framework, allowing people to trade with confidence. As I leave, I am confident that under the excellent leadership of Chair Paul Atkins and Commissioner Mark Uyeda, the SEC's outstanding team will continue to maintain this balance."

When Washington resumes legislative discussions to formulate long-term policies that drive innovation and ensure U.S. competitiveness, the departures of Peirce, Lummis, and Tillis will have a significant impact.

The Next Congress and Crypto Legislation

The new and incumbent members of the 120th Congress will need to work together with crypto industry associations, bank lobbying groups, law enforcement agencies, compliance entities, and other parties wishing to improve the digital asset market structure bill to have a chance of sending the bill to the president for signing and entering the subsequent complex rule-making process. Given that Congress has never passed a bill that satisfies all parties, these goals are undoubtedly significant. Bipartisan compromise type bills are the most likely to survive within the various processes of Congress.

There is reason to believe that those institutions with deep connections on both sides of the aisle will occupy a favorable position to assist the next Congress in drafting a new version of the CLARITY bill.