Updated October 10, 2026. Rewritten to reflect what has happened since March 2026, including the failed Senate vote in September, and with sources. Several claims in earlier versions could not be verified and have been removed, including a named Treasury “programmable compliance” report, a Rhode Island “Private Key Privacy Act,” and an incorrect bill sponsor.
Two crypto fights have run through the 119th Congress. One is about who regulates crypto markets. The other is about whether the Federal Reserve should ever be allowed to issue a digital dollar. Neither is settled as of October 2026.
The CLARITY Act: who regulates which tokens
The Digital Asset Market Clarity Act (H.R. 3633) tries to answer a question U.S. law has left open for years: when is a crypto token a security overseen by the SEC, and when is it a commodity overseen by the CFTC? The bill generally gives the CFTC authority over trading in tokens tied to mature, decentralized networks, while keeping the SEC in charge of tokens whose value depends on a company’s ongoing efforts.
Its path so far:
- July 2025: the House passed the bill with bipartisan support.
- May 14, 2026: the Senate Banking Committee advanced its own version. That text creates categories such as “network tokens” and “ancillary assets,” adds protections for software developers who do not control user funds and for self-custody, puts registration and consumer protection rules on crypto kiosks, and bans paying interest just for holding payment stablecoins while allowing some activity-based rewards. It still has to be reconciled with the Senate Agriculture Committee’s companion bill.
- September 15, 2026: a Senate vote to begin debate failed 49 to 50, short of the 60 votes needed. The main dispute was over ethics rules for officials’ crypto holdings, with stablecoin yield also unresolved.
A motion to reconsider keeps the bill alive, and supporters see the post-election session as the next realistic chance. Until then, the SEC and CFTC are filling the gap with guidance and exemptions.
The CBDC ban: keeping the Fed out of retail digital money
A central bank digital currency (CBDC) would be a digital dollar issued directly by the Federal Reserve. Supporters of a ban argue that a government-run digital currency could give authorities a view into, or even control over, ordinary people’s spending. Opponents of a permanent ban say it removes an option the country might want later and that privacy protections could be written into any design.
- January 2025: an executive order barred federal agencies from working on a U.S. CBDC.
- July 17, 2025: the House passed the Anti-CBDC Surveillance State Act (H.R. 1919) by 219 to 210.
- Senate: the companion bill (S. 1124), led by Sen. Ted Cruz, has not passed. Lawmakers have tried to attach anti-CBDC language to other must-pass bills.
For now, the ban rests on an executive order, which a future administration could reverse, rather than on law.
Why it matters to ordinary crypto users
- Clear rules would make it easier for U.S. exchanges to list tokens and for builders to launch projects without fear of after-the-fact enforcement.
- Stablecoin yield rules decide whether you can earn interest on dollar stablecoins, which matters to banks and to everyday holders.
- The CBDC question is about financial privacy: whether everyday payments stay in private systems like banks and stablecoins or could someday run through the central bank.
Key players
- Rep. French Hill (R-Ark.): chair of the House Financial Services Committee and lead sponsor of the House CLARITY Act
- Rep. Tom Emmer (R-Minn.): lead sponsor of the House anti-CBDC bill
- Sen. Ted Cruz (R-Texas): lead sponsor of the Senate anti-CBDC bill
- Senate Banking and Agriculture Committees: must agree on one Senate market structure text
Sources
- FinTech Weekly: CLARITY Act Senate vote fails 49 to 50 (September 23, 2026)
- Davis Wright Tremaine: Senate Banking Committee advances crypto market structure bill (May 21, 2026)
- The Hill: House passes crypto market structure bill (July 2025)
- GovTrack: H.R. 1919, Anti-CBDC Surveillance State Act
- Congress.gov: S.1124, Anti-CBDC Surveillance State Act
- Latham & Watkins: U.S. crypto policy tracker
This article is for informational and educational purposes only and reflects publicly available legislative information as of October 10, 2026. It is not legal or financial advice.