CLARITY Act faces a new Congress as Democrats win both chambers

Democrats have won both chambers of Congress in the US midterm elections, leaving the stalled CLARITY Act facing a change in congressional control while federal regulators continue developing their own crypto rules. Democrats will take control of Congress when the new session begins on Jan. 3, 2027. CLARITY’s September procedural vote fell 11 votes short of the Senate’s required 60-vote threshold. Republican opposition included concerns about stablecoins drawing deposits away from community banks and credit unions. SEC and CFTC initiatives cover crypto fundraising, custody and trading under their existing legal authority.