McHenry Says Crypto Coalition 'Blew It' on CLARITY Act

Patrick McHenry isn't sugarcoating it. The former House Financial Services Committee chairman says the crypto industry had its best shot at federal market structure rules — and fumbled it. He laid the blame on industry infighting, political timing and an appetite for a flawless bill during a November 2026 interview with Bloomberg TV.

The target was the CLARITY Act, the push to sort out which federal regulator oversees what across digital asset markets. McHenry said a crypto coalition that rejected a workable compromise and held out for a bolder version is the reason nothing crossed the finish line. In his words, the coalition simply blew it.

He didn't spare himself. McHenry admitted his own strategic missteps, including backing a plan to split stablecoin legislation off from the broader market structure fight — a move that created parallel tracks instead of one unified head of steam. By September, he said, political pressure had made any deal impossible, and Democrats turned down what he called an excellent compromise.

Timing is the cruel part. Democrats are set to take control of Congress in January 2027, meaning whatever window existed is closing fast. McHenry made that point plainly on X, arguing CLARITY was only part of the story and that bipartisan progress on crypto has surged compared with two years ago and improved dramatically from four years back.

The stakes stretch well beyond Capitol Hill. Without a comprehensive framework, exchanges, token issuers, investors and financial institutions keep guessing which federal rules apply to them — the exact uncertainty the CLARITY Act was meant to kill.

McHenry's advice going forward: stay in the room. He urged the industry to keep engaging lawmakers and regulators, and pointed to the SEC and CFTC as the institutions that will shape crypto policy no matter who holds the gavel. The next fight is holding onto bipartisan ground already gained — and blocking any restrictive bill that could undo it.