The U.S. Senate's digital asset market structure bill known as the Clarity Act failed to advance to a full Senate vote, raising the possibility that the crypto industry could sharply expand political spending in the 2026 U.S. midterm elections.

Cointelegraph, a blockchain outlet, reported on Sept. 22 that the Senate voted down the Clarity Act on Sept. 15 by 49 votes in favour and 50 against.

The result has sharply reduced the likelihood that Congress will take up the bill during the remaining session through 2027. Some industry advocates do not fully rule out a revote before the next session, but industry political action committees, or PACs, appear to be placing greater weight on election strategy.

Fairshake, a PAC backed by Coinbase and Ripple Labs, plans to spend $30 million, or about 40.47 billion won, for a specific candidate. That candidate, Sherrod Brown, served as chairman of the Senate Banking Committee when Democrats held the majority and has shown a critical stance on crypto. The industry believes Brown's return could become a burden in any future push to revive the Clarity Act.

Politics and markets see the vote as a turning point that will shape the 2027 legislative environment. Economist Paul Krugman said that if Brown wins, Democrats could hold a decisive vote if they become the Senate majority.

The industry has already expanded its influence through election spending. Fairshake spent $41 million, or about 55.3 billion won, in the 2024 election cycle to oppose Democratic candidates, and total ad spending in the same cycle exceeded $130 million, or about 175.34 billion won. The Clarity Act vote failure is seen as a signal that a similar funding offensive could expand again.

Stand With Crypto, a political group launched by Coinbase in 2023, also increased pressure. It warned that lawmakers who failed to advance the Clarity Act could pay a price in the 2026 midterm elections.

Still, no actual spending was immediately confirmed after the vote. As of Sept. 21, Fairshake-linked PACs Defend American Jobs and Protect Progress had not disclosed any spending to the Federal Election Commission, or FEC. Fellowship, funded by Cantor Fitzgerald and Anchorage Digital, and the Digital Freedom Fund, backed by Gemini co-founders Tyler Winklevoss and Cameron Winklevoss, also reported no additional spending disclosures over the same period.

Against that backdrop, with the midterms 42 days away, the election is emerging as a factor that could determine the direction of crypto legislation beyond a simple seat contest. A change in the House and Senate majority alignments could also open room for the bill to be pushed again. Depending on where the industry focuses political funds in the remaining period, election dynamics in key battlegrounds are also expected to be affected.