The Digital Asset Market Clarity Act faces a narrow path through the current Congress after failing to advance in the US Senate, according to two officials who worked on the Trump administration’s digital-asset policy. Tyler Williams, a former counselor to the Treasury secretary for digital assets, said the legislation was “mostly dead, but not entirely dead” when asked whether Congress could still pass it. “I put it as a low percent chance right now,” Williams said during a September 23 discussion at Georgetown University’s Financial Markets Quality Conference. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, stopped short of declaring the legislation dead but acknowledged that lawmakers had little time to resolve the remaining disagreements. The discussion was moderated by Eleanor Terrett, co-founder and host of Crypto in America. Georgetown’s published agenda identified Williams as a former Treasury counselor and Witt as the executive director of the presidential digital-assets council. The White House’s July personnel report also lists Witt as executive director of the Presidential Council of Advisors for Digital Assets. Witt Says Failed Vote Was Procedural, Not Final Passage Witt emphasized that the September 15 Senate action was a vote on whether to move toward considering the legislation, rather than a vote on whether the CLARITY Act should become law. “The vote that happened last week, we all know, was a procedural vote. It was not a vote on passage,” Witt said. The Senate rejected cloture on the motion to proceed to H.R. 3633 by 49 votes to 50. The motion required support from three-fifths of the Senate, or 60 members, to advance. Witt said the inability to clear even that preliminary stage indicated that lawmakers remained divided over parts of the proposed market-structure framework. “There was enough distance on enough of the issues that we couldn’t even overcome the procedural hurdle to begin debate,” he said. He also noted that opposition was not limited to Senate Democrats, as several Republican senators voted against advancing the measure. The Crypto Times previously reported that the vote did not constitute a final rejection of the bill. H.R. 3633 remains on the Senate calendar, and Senator Thom Tillis preserved a procedural route for reconsideration after recording a no vote. Election Calendar Leaves Little Time for Another Vote Witt said the Senate’s remaining calendar before the November 3 midterm elections leaves limited time for another attempt. He argued that funding negotiations and other legislative priorities would consume much of the available floor time before senators return to their states to campaign. “After that, you’re campaigning until November 3,” Witt said. “So it really only comes down to the lame duck.” A lame-duck session would take place after the election but before the incoming Congress begins its term. Witt said the possibility of passing the CLARITY Act during that period would depend heavily on the election results and the willingness of lawmakers to resume negotiations. He did not provide a specific probability or identify which electoral outcome would make passage more achievable. Williams similarly said that while he would not place the bill’s chances at zero, he considered passage during the current Congress unlikely. CLARITY Act Remains Alive but Stalled The House of Representatives passed the CLARITY Act by a 294-134 vote in July 2025. The legislation would establish a federal market-structure framework for digital assets and draw clearer jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Because the Senate has not approved the legislation, it has not reached the president’s desk and has not become law. The Senate could reconsider the motion, negotiate another version or attempt to attach provisions to different legislation. None of those paths currently has a confirmed timetable. Federal regulators have meanwhile continued developing crypto rules under their existing statutory authorities. The Crypto Times reported that both the SEC and CFTC moved ahead with regulatory initiatives following the failed Senate vote. Witt Calls Setback a Failure of US Leadership Witt framed the bill’s stalled progress as a broader question about the United States’ position in digital finance. “It’s a failure of American leadership, frankly,” he said. Witt argued that financial services are increasingly moving onto blockchain infrastructure and that policymakers have a responsibility to establish rules for companies building and operating within that system. He said other jurisdictions could gain an advantage if they provide clearer regulatory frameworks while the United States remains dependent on agency interpretations and enforcement decisions. Those comments represent Witt’s assessment of the competitive consequences of delayed legislation. The Senate vote itself determined only whether the chamber would proceed with debate on H.R. 3633. AI Agents Add Urgency to Crypto Market Rules Witt also connected digital-asset market structure with the growth of artificial intelligence agents capable of conducting financial transactions. He said conventional financial institutions can hire lawyers, seek regulatory guidance or contact government agencies when uncertain about whether a product or transaction complies with securities laws. “An AI agent can’t hire a lawyer,” Witt said. “An AI agent can’t call the SEC.” According to Witt, software-based agents require clear and machine-readable rules that allow them to determine which activities are permitted without relying on informal guidance or case-by-case legal interpretation. He said blockchain networks could provide the transaction and settlement infrastructure for such agents, strengthening the case for a statutory market-structure framework. What Happens Next for the CLARITY Act? The CLARITY Act has not been formally defeated on final passage, but its regular path through the Senate has stalled. Williams’ description of the legislation as “mostly dead” reflects his assessment of the congressional calendar rather than its official legislative status. Witt similarly left open the possibility of renewed negotiations during a post-election session. For the bill to become law, the Senate would still need to advance and pass legislation, reconcile any differences with the House-approved text and send an identical version to the president. Until that happens, the SEC and CFTC will remain responsible. Also Read: CLARITY Act Fails 49-50 in US Senate as SEC & CFTC Move Ahead on Crypto Rules Within 48 Hours

Key Highlights

Former Treasury digital-assets counselor Tyler Williams described the CLARITY Act as “mostly dead, but not entirely dead,” placing its chances in the current Congress at a low percentage.
Patrick Witt said the September 15 Senate vote was procedural rather than final passage, but the failure to begin debate showed lawmakers remained far apart.
Witt said any revival would likely have to occur during the post-election lame-duck session, while arguing that AI agents make clear blockchain market rules increasingly important.

The Digital Asset Market Clarity Act faces a narrow path through the current Congress after failing to advance in the US Senate, according to two officials who worked on the Trump administration’s digital-asset policy.

Tyler Williams, a former counselor to the Treasury secretary for digital assets, said the legislation was “mostly dead, but not entirely dead” when asked whether Congress could still pass it.

“I put it as a low percent chance right now,” Williams said during a September 23 discussion at Georgetown University’s Financial Markets Quality Conference.

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, stopped short of declaring the legislation dead but acknowledged that lawmakers had little time to resolve the remaining disagreements.

The discussion was moderated by Eleanor Terrett, co-founder and host of Crypto in America. Georgetown’s published agenda identified Williams as a former Treasury counselor and Witt as the executive director of the presidential digital-assets council.

The White House’s July personnel report also lists Witt as executive director of the Presidential Council of Advisors for Digital Assets.

Witt Says Failed Vote Was Procedural, Not Final Passage

Witt emphasized that the September 15 Senate action was a vote on whether to move toward considering the legislation, rather than a vote on whether the CLARITY Act should become law.

“The vote that happened last week, we all know, was a procedural vote. It was not a vote on passage,” Witt said.

The Senate rejected cloture on the motion to proceed to H.R. 3633 by 49 votes to 50. The motion required support from three-fifths of the Senate, or 60 members, to advance.

Witt said the inability to clear even that preliminary stage indicated that lawmakers remained divided over parts of the proposed market-structure framework.

“There was enough distance on enough of the issues that we couldn’t even overcome the procedural hurdle to begin debate,” he said.

He also noted that opposition was not limited to Senate Democrats, as several Republican senators voted against advancing the measure.

The Crypto Times previously reported that the vote did not constitute a final rejection of the bill. H.R. 3633 remains on the Senate calendar, and Senator Thom Tillis preserved a procedural route for reconsideration after recording a no vote.

Election Calendar Leaves Little Time for Another Vote

Witt said the Senate’s remaining calendar before the November 3 midterm elections leaves limited time for another attempt.

He argued that funding negotiations and other legislative priorities would consume much of the available floor time before senators return to their states to campaign.

“After that, you’re campaigning until November 3,” Witt said. “So it really only comes down to the lame duck.”

A lame-duck session would take place after the election but before the incoming Congress begins its term. Witt said the possibility of passing the CLARITY Act during that period would depend heavily on the election results and the willingness of lawmakers to resume negotiations.

He did not provide a specific probability or identify which electoral outcome would make passage more achievable.

Williams similarly said that while he would not place the bill’s chances at zero, he considered passage during the current Congress unlikely.

CLARITY Act Remains Alive but Stalled

The House of Representatives passed the CLARITY Act by a 294-134 vote in July 2025.

The legislation would establish a federal market-structure framework for digital assets and draw clearer jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Because the Senate has not approved the legislation, it has not reached the president’s desk and has not become law.

The Senate could reconsider the motion, negotiate another version or attempt to attach provisions to different legislation. None of those paths currently has a confirmed timetable.

Federal regulators have meanwhile continued developing crypto rules under their existing statutory authorities. The Crypto Times reported that both the SEC and CFTC moved ahead with regulatory initiatives following the failed Senate vote.

Witt Calls Setback a Failure of US Leadership

Witt framed the bill’s stalled progress as a broader question about the United States’ position in digital finance.

“It’s a failure of American leadership, frankly,” he said.

Witt argued that financial services are increasingly moving onto blockchain infrastructure and that policymakers have a responsibility to establish rules for companies building and operating within that system.

He said other jurisdictions could gain an advantage if they provide clearer regulatory frameworks while the United States remains dependent on agency interpretations and enforcement decisions.

Those comments represent Witt’s assessment of the competitive consequences of delayed legislation. The Senate vote itself determined only whether the chamber would proceed with debate on H.R. 3633.

AI Agents Add Urgency to Crypto Market Rules

Witt also connected digital-asset market structure with the growth of artificial intelligence agents capable of conducting financial transactions.

He said conventional financial institutions can hire lawyers, seek regulatory guidance or contact government agencies when uncertain about whether a product or transaction complies with securities laws.

“An AI agent can’t hire a lawyer,” Witt said. “An AI agent can’t call the SEC.”

According to Witt, software-based agents require clear and machine-readable rules that allow them to determine which activities are permitted without relying on informal guidance or case-by-case legal interpretation.

He said blockchain networks could provide the transaction and settlement infrastructure for such agents, strengthening the case for a statutory market-structure framework.

What Happens Next for the CLARITY Act?

The CLARITY Act has not been formally defeated on final passage, but its regular path through the Senate has stalled.

Williams’ description of the legislation as “mostly dead” reflects his assessment of the congressional calendar rather than its official legislative status. Witt similarly left open the possibility of renewed negotiations during a post-election session.

For the bill to become law, the Senate would still need to advance and pass legislation, reconcile any differences with the House-approved text and send an identical version to the president.

Until that happens, the SEC and CFTC will remain responsible.

Also Read: CLARITY Act Fails 49-50 in US Senate as SEC & CFTC Move Ahead on Crypto Rules Within 48 Hours

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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