The Senate rejected the CLARITY Act on September 15 after the bill received 49 votes, nine short of the 60 needed to advance. The defeat prompted a public dispute between Missouri Republican Senator Josh Hawley and David Schwartz, Ripple’s CTO Emeritus and one of the architects of the XRP Ledger. Hawley said he opposed the measure because Missouri farmers feared rural banks could lose investment capital and become less able to provide loans. Schwartz argued that the bill would not meaningfully reduce bank lending capacity and that investors could replace any lost financing. The vote followed more than 100 Republican changes, ethics provisions accepted by President Trump, and a rejected last-minute Democratic counteroffer. The Securities and Exchange Commission (U.S. securities regulator) and Commodity Futures Trading Commission (U.S. derivatives regulator) are expected to continue overseeing the sector through guidance and enforcement, leaving the industry without the statutory framework that SEC Chair Paul Atkins has said is needed for durable rules.