WSJ: Why the CLARITY Act Failed to Pass

The CLARITY Act, a landmark digital-asset market-structure bill, stalled in the U.S. Senate after failing to secure enough votes in a procedural ballot. Negotiations collapsed following a dispute over provisions that would have restricted interest-bearing rewards for digital token holders, a practice opposed by banks. Coinbase CEO Brian Armstrong, a key lobbyist for the bill, withdrew support in January, citing concerns over the bill's quality. While some industry figures blame Democratic opposition and shifting political priorities, others, including Ripple CEO Brad Garlinghouse, suggest that internal industry infighting and hardline stances contributed to the legislative failure.