CZ Says CLARITY Act Setback Won't Stop Progress

Binance co-founder Changpeng Zhao (@cz_binance) pushed back against the gloom surrounding the U.S. Senate's rejection of the Digital Asset Market Clarity Act, arguing that technological progress in crypto cannot be legislated away, even if individual bills fail.

Senate Blocks the CLARITY Act

The comments followed a significant blow to the industry on September 15, when the Digital Asset Market Clarity Act failed to survive the politics of the U.S. Senate, as a 49-50 vote fell far short of the 60 supporters required to advance. The procedural vote leaves the bill stalled on Capitol Hill after months of negotiations aimed at building bipartisan support.

The CLARITY Act would have established a regulatory framework for U.S. digital asset markets, proposing to clarify the roles of the SEC and CFTC. Voting no were 50 senators, including all Democrats and four Republicans: Sen. Susan Collins of Maine, Josh Hawley of Missouri, Jerry Moran of Kansas and Thom Tillis of North Carolina.

The failed vote likely means the crypto industry will have to wait until next year for clearer rules. Time is squeezed ahead of midterm elections in November as lawmakers go on recess and focus turns to campaigning.

CZ Points to Stablecoins as a Path Forward

CZ's remarks came in direct response to Superstate CEO Robert Leshner's reaction to the Senate result. Leshner is the CEO and co-founder of Superstate, an asset management firm modernizing investing through tokenized financial products. Leshner argued that the setback leaves crypto businesses and developers without new federal protections they had been counting on.

CZ took a more measured view, acknowledging that setbacks are inevitable but that progress in the underlying technology continues regardless of political outcomes. He pointed specifically to stablecoins as an area where development and yield opportunities can advance independent of the CLARITY Act's fate.

His stance echoes a broader view across parts of the industry. Grayscale, responding to the Senate's failure, said the industry continues making progress through ongoing work from regulators like the SEC and CFTC, and reaffirmed its commitment to advancing clear digital asset rules.

For now, the focus shifts to what regulators can do without new legislation, and whether the industry can maintain momentum heading into a period of political uncertainty.

Sources:
CoinDesk: Clarity Act Fails in Senate Vote
CNBC: Senate Cloture Vote on Clarity Act Fails
The Block: Clarity Act Fails Procedural Senate Vote