Senate Banking Committee Chair Tim Scott accused the Democratic caucus of blocking the legislation intended to create a market structure for digital assets. The CLARITY Act failed to advance on Sept 15 after falling short of the 60 votes required for cloture in the Senate, sparking a public dispute over the bill's failure.

Coinbase CEO Brian Armstrong denied reports from the Wall Street Journal that his negotiation tactics stalled the legislative process. Armstrong asserted that he supported the final Senate draft and that the newspaper repeated bank lobby talking points to shift blame, noting he only opposed a January draft over specific issues like DeFi and stablecoin rewards.