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Chick-fil-A has come a long way since opening as a small roadside diner in Georgia in 1946.
Irene Jiang / Business Insider
In 1946, Chick-fil-A founder S. Truett Cathy opened the Dwarf Grill in Hapeville, Georgia.
In 1967, Cathy opened the first Chick-fil-A and invented the restaurant's iconic chicken sandwich.
Chick-fil-A is now the third-largest restaurant chain in the US.
Eighty years after Chick-fil-A founder Truett Cathy opened his first restaurant, Chick-fil-A is now the third-largest restaurant brand in the country.
The family-owned chain has since grown to more than 3,200 US restaurants and generated nearly $24 billion in US systemwide sales in 2025, trailing only McDonald’s and Starbucks, per Technomic's Top 500 chains report.
The chicken chain's rise has not been without controversy.
Chick-fil-A faced widespread backlash in 2012 after Cathy's son Dan, then the company’s CEO, publicly opposed same-sex marriage, while the company and its foundation were criticized for donations to organizations with anti-LGBTQ+ positions.
This week, current CEO Andrew Cathy declined to directly address the company’s history or state its position on LGBTQ+ equality in an interview with NBC, instead saying Chick-fil-A is focused on hospitality and welcoming everyone who comes through its doors.
Here’s how Chick-fil-A grew from a small Southern diner into a fast-food powerhouse.
Chick-fil-A's origin story began when Truett Cathy opened the Dwarf Grill in Hapeville, Georgia, in 1946.
Chick-fil-A
The small roadside diner was later renamed when it became one of the chain's "Dwarf Houses." The original location previously served as one of 12 Chick-fil-A locations, offering modern favorites and items from the original restaurant's "blue menu."
The first official Chick-fil-A locations were located in shopping malls.
Chick-fil-A
The first restaurant to bear the name Chick-fil-A opened in the Greenbriar Mall in Atlanta in 1967.
According to the company, the restaurant occupied just 384 square feet, and some have credited the chain with being an "early pioneer" of what would become the modern mall food court.
Chick-fil-A opened its first stand-alone restaurant in 1986 in Atlanta.
Chick-fil-A
Free-standing locations are now the norm for Chick-fil-A, and mall locations are much less common.
Chick-fil-A also experimented with drive-thru-only restaurant locations.
Chick-fil-A
The first-ever drive-thru-only Chick-fil-A restaurant opened in 1993 in Greenville, South Carolina. By eliminating dining rooms in these locations, the restaurants were designed to be faster and more convenient for customers.
Today, there are more than 3,000 Chick-fil-A restaurants in North America.
Chick-fil-A
The chain, which was founded in Georgia, still has its headquarters there, and is regarded as a "Southern" fast-food chain. However, restaurants can actually be found in 48 different states as well as Washington, DC.
In 2019, Chick-fil-A expanded internationally by opening its first location in Toronto. Later that year, the chain opened its first restaurant in the United Kingdom.
The chain now has locations across Canada, Puerto Rico, the UK, and Singapore.
Before Chick-fil-A began using a cow as its mascot, the chain was represented by — perhaps unsurprisingly — a chicken.
Chick-fil-A
The chain's tag line used to read, "The best thing that ever happened to a Chicken."
Now, Chick-fil-A's slogan pays homage to its most famous menu item — its chicken sandwich.
An employee picks up a fried chicken sandwich during an event ahead of the grand opening for a Chick-fil-A restaurant in New York.
465-square-meter/Getty Images
The "A" in Chick-fil-A comes from both a play on the word "fillet" and a nod to the "grade-A top quality chicken" used in Chick-fil-A's chicken sandwiches.
However, the chain also still uses cows and the words "Eat Mor Chikin" to bring customers through its doors.
John Adams/Icon Sportswire/Corbis/Icon Sportswire/Getty Images
The "Eat Mor Chikin" slogan, accompanied by two "rebel cows," debuted in 1995 on an Atlanta billboard, according to the company.
The campaign quickly gained traction and is now regarded as one of Chick-fil-A's most famous and successful advertising campaigns.
The original Dwarf Grill menu served diner favorites like breakfast and burgers.
Hayley Peterson/Business Insider
Menu items included everything from waffles to sandwiches, steak and potatoes, and the chain's famous Hot Brown, a hot casserole dish made with lean white meat chicken, gravy, mashed potatoes, cheese, and bacon.
Today, Chick-fil-A still serves breakfast, but the menu items look much different.
Irene Jiang / Business Insider
Launched in 1986, the first item added to the breakfast menu was the Chick-fil-A chicken biscuit.
Today, the Chick-fil-A menu typically includes more than 50 items.
At the Dwarf Grill, Truett Cathy's first restaurant, you could order burgers.
Business Insider/Hayley Peterson
The Dwarf Grill served both hamburgers and cheeseburgers, which the restaurant's menu said were made from "100% choice beef, chopped in our kitchen." Served on a large toasted bun, the menu also boldly said that "they're the best."
Business Insider's Hayley Peterson tried the burger for herself when she visited the Dwarf House, and she found the patty "thick and flavorful" and that the cheese "melted perfectly between the patty and the bun."
You won't find burgers on any Chick-fil-A menus, but you will find the chain's famous chicken sandwich.
Irene Jiang / Business Insider
In 1964, Truett Cathy created the recipe for Chick-fil-A's original chicken sandwich: a fried, boneless chicken breast nestled between two buttered buns and topped with two pickles.
Though the sandwich soon shot to popularity at the Dwarf House, the invention was odd compared to other fast-food offerings and food tastes of the time.
However, Cathy's bet on chicken would soon pay off.
Though Chick-fil-A has expanded immensely since the launch of its chicken sandwich, the recipe has remained virtually the same.
In 1989, Chick-fil-A added a grilled chicken sandwich to its menu.
Hollis Johnson
Introduced as a health-conscious option for Chick-fil-A customers, Cathy introduced the original grilled chicken sandwich alongside the deluxe grilled chicken sandwich, which included the same pickle-juice-marinated grilled chicken, pickles, and white bun, along with lettuce and tomato.
According to the restaurant's website, Cathy tested more than 1,200 recipes to perfect the chain's grilled chicken recipe.
Chick-fil-A revolutionized its menu yet again when it launched its spicy chicken sandwich nationwide in 2010.
Irene Jiang/Business Insider
"While we recognize that not everyone enjoys spicy food, for the growing customer constituency that does, our Spicy Chicken Sandwich offers a unique, well-balanced and craveable spicy flavor," William F. Faulk, Chick-fil-A's vice president of innovation and new ventures, said in a press release at the time.
A precursor to Chick-fil-A's famous fries was its fried okra, a traditional Southern favorite.
Business Insider/Hayley Peterson
"The batter on the outside is light and crispy, and the okra inside is hot and juicy, with a hint of salt," Business Insider's Hayley Peterson said in a previous article.
Today, the chain's waffle fries are a beloved menu item.
Irene Jiang / Business Insider
The chain began selling waffle fries in 1985, with the unique shape chosen as a perfect vehicle for dipping sauces.
In 1982, chicken nuggets were added to the menu.
Irene Jiang / Business Insider
The first Chick-fil-A nuggets came in a six-count box, inspired by customers asking restaurant employees to cut up pieces of its signature chicken sandwich so they could eat them by hand or serve bite-sized nuggets at parties.
"We are still serving the same delicious nuggets today that we started with," Shona Jonson, senior manager of culinary, product strategy, and development at Chick-fil-A, once said.
Today, Chick-fil-A chicken nuggets come in 5-, 8-, 12-, or 30-count packs.
Chick-fil-A introduced grilled chicken nuggets in 2012.
Erin McDowell/Business Insider
The item first appeared on the chain's kids' menu before being added to the main menu.
Chick-fil-A's success is largely credited to the chain's founder and CEO, S. Truett Cathy, a devout Baptist who built the family-owned business on Christian values.
Chick-fil-A
Cathy's impact on Chick-fil-A is undeniable, from his decades working at the Dwarf Grill to the invention of the chain's famous chicken sandwich.
Another part of Cathy's legacy that contributed to Chick-fil-A's success was its unique process for hiring franchisees, which also upheld the chain's values of "customer first, personal excellence, continuous improvement, working together, and stewardship."
As the creator of the first Chick-fil-A scholarship fund for restaurant employees, Cathy left a legacy that inspired franchisees and employees across the country to continue his mission of building a customer- and employee-focused fast-food chain.
Cathy's son, Dan T. Cathy, led the company as CEO until 2021.
Cyrus McCrimmon/The Denver Post/Getty Images
Dan T. Cathy was made CEO in 2013, two years before his father died. Cathy worked alongside his brother, Donald "Bubba" Cathy, who still serves as executive vice president of the chicken chain and president of the company's Dwarf House and Truett's Grill restaurant concepts.
Both Donald and Dan T. Cathy recall growing up in their father's early restaurants, doing odd jobs like scraping gum from underneath tables and spending time in the Hapeville Dwarf House.
Dan T. Cathy stepped down as CEO of Chick-fil-A on November 1, 2021, but still serves as chairman of the company. He was succeeded by his son, Andrew Cathy.
Over the years, the Cathy family and Chick-fil-A have received criticism for their apparent stances on issues like same-sex marriage.
Tibrina Hobson/FilmMagic/Getty Images
Chick-fil-A's contentious reputation largely stems from donations made by Chick-fil-A to charities criticized for anti-LGBTQ+ positions, as well as comments made by Dan T. Cathy in 2012.
According to a previous article by Business Insider, the Cathy family and Chick-fil-A donated millions of dollars to groups opposing same-sex marriage, from Christian charities to "more extreme" anti-LGBTQ+ lobbying organizations through the WinShape Foundation.
Some of these organizations included Fellowship of Christian Athletes, an athletic organization that, according to Vox, requires applicants to sign a "sexual purity statement" that condemns LGBTQ+ relationships, the Marriage & Family Foundation, which has spoken out against marriage equality, and Exodus International, a group that supported the use of gay-conversion therapy.
Comments made by Dan T. Cathy in a 2012 interview with the Baptist Press quickly prompted backlash from LGBTQ+ activists and organizations.
William Plowman/AP Images
In the interview, Cathy said that he believed in the "biblical definition of the family unit," or that a marriage should be between a man and a woman.
Protests ensued nationwide, including a number of "kiss-ins" led by LGBTQ+ activists, at Chick-fil-A restaurants across the country, CNN reported.
Others came out in support of the chain and Cathy's comments. Following the controversy and subsequent calls to boycott the brand, former Arkansas Governor Mike Huckabee created a Facebook page encouraging people to participate in "Chick-fil-A Appreciation Day" and to buy food from the chain that day, Huffington Post reported.
Cathy did little to quell criticism of his comments when he later clarified his position in a 2012 radio interview, saying, "As it relates to society in general, I think we are inviting God's judgment on our nation when we shake our fist at him and say, 'We know better than you do as to what constitutes marriage.'"
Protests against the company predate the chain's controversial donations and comments made by Dan T. Cathy.
Tibrina Hobson/FilmMagic/Getty Images
In 2002, a Houston Chick-fil-A restaurant manager sued the chain for discrimination, Forbes reported. The employee, who is Muslim, said he was fired one day after refusing to pray to Jesus along with their fellow coworkers during a training session.
At the time, Jerry Johnston, a spokesperson for Chick-fil-A, told the Houston Chronicle that the company had not yet been served with a lawsuit and therefore couldn't comment on the dispute, My Plainview reported. Forbes states that the suit was settled out of court on undisclosed terms.
Then, in 2011, a Pennsylvania Chick-fil-A prompted a nationwide boycott of the chain when the restaurant provided free lunch to a Valentine's Day marriage seminar sponsored by the Pennsylvania Family Institute, a controversial "pro-family" group that has spoken out against same-sex marriage.
The decision prompted criticism, including a petition that gathered thousands of signatures urging Chick-fil-A to stop discriminating against LGBTQ+ people. However, the franchise in question claimed the decision to donate food was not motivated by any anti-LGBTQ+ sentiments.
"It's absolutely, categorically blown out of proportion," the Pennsylvania franchise owner Brian Gibson said, Penn Live reported. "We donate food all the time. We certainly don't take into consideration anyone's political affiliations or anything like that. We just like to feed people."
Dan T. Cathy released a statement in 2011 following the accusations that Chick-fil-A was anti-LGBTQ+, saying, "In recent weeks, we have been accused of being anti-gay. We have no agenda against anyone. At the heart and soul of our company, we are a family business that serves and values all people regardless of their beliefs or opinions. We seek to treat everyone with honor, dignity, and respect, and believe in the importance of loving your neighbor as yourself."
Cathy continued, saying, "While my family and I believe in the Biblical definition of marriage, we love and respect anyone who disagrees ... Chick-fil-A's Corporate Purpose is 'To glorify God by being a faithful steward of all that is entrusted to us, and to have a positive influence on all who come in contact with Chick-fil-A.' As a result, we will not champion any political agendas on marriage and family."
The chain also received criticism for Dan T. Cathy's ties to a charitable organization that notably opposes the Equality Act.
A Chick-fil-A sign above the glass entrance to a Manhattan restaurant.
Smith Collection/Gado/Getty Images
The Daily Beast reported on June 1, 2021, that the National Christian Charitable Foundation (NCF) has donated money to groups actively fighting legislation to protect LGBTQ+ rights in the US. Among the organization's "high-dollar donors" is Chick-fil-A's CEO, Dan Cathy.
The National Christian Charitable Foundation is one of the largest charitable organizations in the country and supports thousands of charities and causes. Among them are the Heritage Foundation and the legal advocacy group Alliance Defending Freedom, both of which strongly oppose the Equality Act.
Chick-fil-A itself has not donated any funds to Christian charities or political groups in recent years, saying in 2019 that it would instead support charities focused on "three specific initiatives of homelessness, hunger, and education."
Chick-fil-A has taken steps to overturn its reputation as being anti-LGBTQ.
"We made multiyear commitments to both organizations, and we fulfilled those obligations in 2018. Moving forward, you will see that the Chick-fil-A Foundation will support the three specific initiatives of homelessness, hunger, and education," a Chick-fil-A representative said in a statement to Business Insider.
However, some LGBTQ+ advocates said that while they were hopeful about the decision, Chick-fil-A still has a ways to go before it can be considered truly inclusive of the LGBTQ+ community.
"In addition to refraining from financially supporting anti-LGBTQ organizations, Chick-fil-A still lacks policies to ensure safe workplaces for LGBTQ+ employees and should unequivocally speak out against the anti-LGBTQ+ reputation that their brand represents," Drew Anderson, the director of campaigns and rapid response for GLAAD, an organization that condemns LGBTQ+ discrimination, said in a statement in 2019.
Andrew Cathy, who took over as CEO in 2021, recently declined to comment on the company's "anti-LGBTQ+" past.
Andrew T. Cathy in 2024.
Paras Griffin/Getty Images
When asked to comment on the company's past controversies and criticism from LGBTQ+ advocacy groups in 2026, Cathy offered a diplomatic response, emphasizing the company's commitment to serving "anybody" who walks through the door.
"We've always been focused on serving great food and hospitality, and so for anybody that comes in the door, we're going to continue to do that," he said in a recent interview with NBC News.
Despite a series of controversies, the fast-food chain has continued to grow.
Tom Pennington/Getty Images
Business Insider previously reported that anti-same-sex-marriage comments said by Dan T. Cathy in 2012, controversial donations, and resulting backlash over the years have done little to slow Chick-fil-A's growth.
Nation's Restaurant News reported that the company generated nearly $24 billion in sales in 2025 and operates over 3,000 locations nationwide.
One thing is for sure — while Chick-fil-A has an undeniably controversial past, there's no stopping the chicken chain from winning over customers nationwide, one chicken sandwich at a time.
Most Americans know Stripe as the checkout box on a website. That picture is five years out of date.
Stripe reports that businesses on its platform generated $1.9 trillion in total volume in 2025, up 34 percent in a single year. By the company’s own reckoning, that is roughly 1.6 percent of global GDP. It claims 90 percent of the Dow Jones Industrial Average and 80 percent of the Nasdaq 100 as customers.
A private company, owned by insiders and venture funds and answerable to no public shareholder, already clears a measurable share of the world’s commerce. Now it is building the payment system for customers that are not human.
Two Kinds of Token
This writer has spent the past year explaining tokenization: stocks, bonds, real estate, and dollars converted into programmable entries on a digital ledger. That is the first kind of token.
There is a second kind. Every artificial intelligence model consumes and produces “tokens,” the small fragments of text that are the unit of machine computation. Every query to an AI model is metered in tokens and billed in tokens.
Tokens of value and tokens of computation are different things. Stripe is the one company positioning itself to meter, price, and settle both.
Emily Sands, Stripe’s Head of Data and AI, is an economist by training. In a recent interview with Nate B. Jones, she said this about inference tokens:
“Tokens are not yet a currency—maybe they will be, we’ll see—but they are certainly a very valuable asset.”
Stripe’s own AI chief is saying publicly that units of machine computation could become money.
The Pieces, In Order
The factual record comes from Stripe’s own announcements.
Stripe acquired Bridge, a stablecoin platform. Its 2025 annual letter reports that stablecoin payments volume doubled to around $400 billion, that an estimated 60 percent of it was business-to-business, and that Bridge’s own volume more than quadrupled.
With the venture firm Paradigm, Stripe built Tempo, which it describes as “a blockchain purpose-built for payments.”
The Machine Payments Protocol. On March 18, 2026, Stripe launched the protocol alongside the Tempo mainnet. It lets a business tell an AI agent, in machine-readable form, what it sells, what it costs, and how to pay.
Stripe acquired Metronome, a usage-based billing company that meters consumption in real time.
Streaming payments. At its Sessions 2026 conference, Stripe combined the two into “streaming payments.” These are stablecoin micropayments on Tempo, tied to Metronome’s meter, so that a business can “get paid for every token, exactly at the moment it’s used.”
Stripe was candid about why the old system cannot do this: “The amounts are too small and the usage is too fast—existing systems aren’t capable of processing minute sums every few milliseconds.”
A credit card cannot move a penny, because the fees alone exceed the payment. A stablecoin on a purpose-built chain can. Sands was measured about it: “Stablecoins bring us a long way. It is not the only way… but so far stablecoins seem to be an important part of microtransactions.”
Why OpenRouter Matters
In August, the financial press reported that Stripe had agreed to buy OpenRouter for more than $7 billion.
OpenRouter is a switchboard. A developer sends it a task, and OpenRouter routes that task to whichever of some 400 AI models best fits the required cost, speed, and quality. Roughly eight million developers use it.
Every request through OpenRouter is a metered event, and every metered event is a bill. With the acquisition, the company that counts the tokens and the company that collects the money are the same company.
Stripe has always seen the revenue side of a business: who paid, how much, how often. OpenRouter shows it the cost side: which model was used, what it cost, and how well it performed. Sands said it directly:
“You want to maximize profit on both the revenue side and the true-cost side, which requires getting deep into the guts of the underlying intelligence in your product and agent.”
She also gave the acquisition a name: “the rails for intelligence—not the rails for money, but the rails for intelligence.”
Stripe president Will Gaybrick told Payments Dive that the company is evolving from a payments company into “an AI infrastructure player.” He predicted there will not be room “for 100 different AI orchestrators.”
That describes a company expecting the market to consolidate around a few orchestrators and planning to be one of them.
The Permission Layer
The payments are the visible part of the system. The reputation scoring that precedes them matters more.
Sands described how Stripe helped the AI coding company Cursor with a new kind of theft: fraudsters opening accounts to steal free computing credits. No payment had occurred, so there was no transaction to flag. Stripe solved it anyway:
“That allowed us to move from scoring transactions to identifying abusive or risky customers.”
Because Stripe sees across millions of businesses, it can judge a person at the moment he creates an account, before he has bought anything. It then passes those scores to sellers, so that, in Sands’ words, “businesses can make decisions.”
Stripe’s Link wallet, which Sands puts at about 300 million consumers, is becoming “the wallet for agents.” Your identity is attached to it. Your agent spends through it. The human owner sets the spending limits, and every purchase traces back to a named person.
The stated purpose is fraud prevention, and the fraud is real. But a cross-merchant reputation score, run by one private company and applied before any transaction exists, is a permission system whatever its purpose. This writer has documented the same architecture at the Bank for International Settlements and the largest banks. Stripe arrived at it from the commercial side, with no mandate and no public debate.
What This Means for the Individual
Sands made two admissions that deserve attention.
First, on pricing: “There is probably no longer such a thing as a SKU.” The fixed, posted price, the same for every buyer, is giving way to pricing that adjusts continuously by customer and by outcome.
Second, on negotiation between machines:
“Agents are relentless. They are willing to negotiate as long as they need to negotiate… You could imagine consumer surplus being eroded relatively quickly.”
Consumer surplus is the economist’s term for the good deal, the difference between what you would have paid and what you did pay. An economist at the center of this system expects that difference to shrink.
My Thoughts
My inference is as follows. Stripe has assembled, under one private roof, a wallet bound to identity, a reputation score that precedes the purchase, a meter on machine intelligence, a stablecoin, and a blockchain to settle it. Each piece has a reasonable business justification. Together they amount to the ledger, the meter, and the gate for machine commerce.
Technocracy was defined in 1938 as the science of social engineering, with the measurement and accounting of all production and consumption at its core. The original Technocrats had no instrument that could do it. Stripe’s stack, built for ordinary commercial reasons, can.
Whoever owns the meter sets the terms of commerce, and Stripe now owns the meter.
References
CoinDesk, “Coinbase-Backed AI Payments Protocol Wants to Fix Micropayment but Demand Is Just Not There Yet,” CoinDesk, March 11, 2026. Cites Artemis data: about $28,000 daily volume, about 131,000 daily transactions, average payment about $0.20, roughly half of activity self-dealing or wash trading.
Forrester, “Why Stripe’s Machine Payments Protocol Signals a Turning Point for Micropayments,” Forrester Blogs, 2026. Machine Payments Protocol launched March 18, 2026, with the Tempo mainnet, co-created with Paradigm.
Nate B. Jones, “AI Agents Are Starting To Buy. Stripe Is Building How They Pay,” interview with Emily Sands, Head of Data and AI, Stripe, YouTube, 2026. Source of all Sands quotations.
Payments Dive, “Stripe Acquisition May Bolster Its AI Strategy,” Payments Dive, 2026. Reported price above $7 billion (Bloomberg) and up to $10 billion (Wall Street Journal); about 8 million developers and 400 models; Gaybrick statements.
Stripe, “Stripe Publishes 2025 Annual Letter and Announces Tender Offer,” Stripe Newsroom, 2026. $1.9 trillion total volume, up 34 percent; roughly 1.6 percent of global GDP; 90 percent of the Dow and 80 percent of the Nasdaq 100; stablecoin volume around $400 billion; Bridge volume more than quadrupled; Tempo.
Stripe, “Stripe Builds Out the Economic Infrastructure for AI with 288 Launches,” Stripe Newsroom, Sessions 2026. Streaming payments; Metronome metering with stablecoin micropayments on Tempo; Link wallets for agents.
Technocracy Inc., The Technocrat magazine, 1938. Definition of Technocracy as “the science of social engineering.”
AI agents are becoming customers, and most businesses have already decided whether agents can buy from them without realizing it. I went to Stripe to ask Emi...
Failure of the CLARITY Act does not stop the tokenization train, but it will slow it down. The SEC and CFTC will now write the rules by exemption, no-action letter, and enforcement discretion. The GENIUS Act provided the settlement layer in 2025, and the banks have already caved to tokenization. The stock markets are already being tokenized. Get ready for my new book, CRUCIBLE OF TOKENS, to figure out what this means to you, so you can take evasive action. ⁃ Patrick Wood, Editor.
The Senate on Tuesday failed to advance the Digital Asset Market Clarity Act, falling short of the 60 votes needed to invoke cloture on the motion to proceed to H.R. 3633. The vote, held at about 2:15 p.m. ET, was the first floor test of comprehensive crypto market-structure legislation in the chamber. It was not a vote on final passage. It was a vote on whether debate could even begin. The answer was no, with 50 no votes and 49 yes votes.
Every Democrat voted against the measure. Three Republicans – Sens. Susan Collins of Maine, Josh Hawley of Missouri and Jerry Moran of Kansas – also voted against the measure
The Clarity Act is the market-structure half of the crypto legal framework Congress began building last year, the companion to the GENIUS Act’s stablecoin rules. It draws the line between digital assets regulated as commodities under the CFTC and those regulated as securities under the SEC, puts spot trading platforms under a federal registration regime for the first time, and sets statutory terms for self-custody, noncustodial software and rewards on stablecoin balances. It cleared the House last July with 78 Democrats and then spent a year in Senate rewrites.
That result effectively freezes the bill in place with almost no calendar left before the midterms. Republicans control 53 seats. They needed at least seven Democrats, and more if GOP holdouts peeled off over bank or law-enforcement concerns. They did not get them.
The House passed its version 294-134 in July 2025. The Senate Banking Committee reported a version 15-9 in May 2026, with Democrats Ruben Gallego of Arizona and Angela Alsobrooks of Maryland joining Republicans. Tuesday was supposed to be the moment those committee crossovers turned into a floor coalition. Both Gallego and Alsobrooks voted no on cloture. Instead, the first hurdle became the last one of 2026.
BREAKING: 🇺🇸 The Crypto CLARITY Act has failed to pass the Senate cloture vote. pic.twitter.com/0VAw1H9Eyl
Senate Republicans released what they called their “last, best and final” text Sunday night. Sens. Cynthia Lummis of Wyoming, Banking Chair Tim Scott of South Carolina, and Agriculture Chair John Boozman of Arkansas said the draft folded in 126 substantive changes requested by Democrats. The package included new ethics language modeled on a Tillis-Gallego proposal, edits to the Blockchain Regulatory Certainty Act for noncustodial developers, Agriculture Committee guardrails on affiliate trading and tribal gaming, and a Treasury “circuit breaker” meant to address bank fears that stablecoin yield would drain community-bank deposits.
Lummis’s line was blunt: Democrats got what they wanted; now take yes for an answer.
Democrats did not. Late Monday they sent a counteroffer. According to people familiar with it, they did not reopen the stablecoin-yield fight – sources had described that as a “Republican-only” problem – but they did demand more on ethics (large holdings, dependent children, paid crypto promotions), a narrower BRCA that expressly does not modify criminal law, and tighter Ag-title rules on exchanges and conflicts. Sens. Mark Warner of Virginia, Ruben Gallego of Arizona, and Raphael Warnock of Georgia said the White House-approved ethics language still needed work. Sen. Elizabeth Warren of Massachusetts went further, arguing the enforcement design left the Trump administration too much control and left loopholes around existing presidential crypto interests.
Republicans rejected the counteroffer Tuesday morning. “In response to a significant step in their direction, Democrats have chosen to move the goalposts again,” Senate Banking Committee spokesman Jeff Naft said. “Yet we are hearing the same unreasonable asks and the same refusal to take yes for an answer. The final text is public.” Lummis’s office said the Democratic paper “looks identical to their opening position at the start of recess.”
White House Crypto Council Executive Director Patrick Witt had already signaled there was little room left. “If there are any changes, we’re talking about punctuation at this point or technical changes,” he told Crypto In America on Monday. “I view that as definitely a best and final offer.”
Three fights that never closed
Ethics. This was the political core. Democrats wanted restrictions on large crypto holdings by the president, vice president, members of Congress, judges, and family, plus limits on paid promotions. Republicans added language they said tracked the Tillis-Gallego framework and gave state attorneys general a role in enforcement. Critics said it still left gaps around existing ventures tied to the Trump family and put too much enforcement discretion in the Justice Department. Warren and others treated that as disqualifying. The Democrats who had spent months negotiating the bill, Kirsten Gillibrand, Mark Warner, Cory Booker, Raphael Warnock, Ruben Gallego, Angela Alsobrooks and Catherine Cortez Masto, all voted no, according to Crypto In America’s Eleanor Terrett.
Developer protections and DeFi. The BRCA language was meant to shield noncustodial software developers from money-transmitter registration. Sen. Catherine Cortez Masto of Nevada has been the Democratic face of that fight. Republicans already stripped explicit criminal safe harbors to satisfy her. Her camp still wanted the provision narrowed and a sentence stating that nothing in it changes criminal law. Industry and GOP negotiators called that a second move of the goalposts.
Banks and stablecoin yield. Eight banking trade groups, including the American Bankers Association and the Independent Community Bankers of America, attacked the new circuit breaker as “not a safeguard at all” because it would fire only after deposits had already left. They wanted tighter bans on interest-like payments on stablecoin balances. The White House Council of Economic Advisers published a tool arguing there is “no meaningful relationship between stablecoin growth and community bank deposit flight.” Witt accused the banks of acting in bad faith: “If you oppose the Clarity Act because you just hate crypto, that’s fine. Just say that.”
That bank fight mattered inside the GOP. Sen. John Curtis of Utah said he would vote to proceed but was a no on final passage. Sens. John Cornyn of Texas and Susan Collins of Maine – Collins called the bill a “moving target” and flagged community-bank deposits – were publicly undecided going into the vote. Sens. Rand Paul of Kentucky and Josh Hawley of Missouri were widely expected to oppose the bill on substance. Mitch McConnell of Kentucky returned to the floor Monday after a three-month absence and said he would “do my best to be present for tough votes.” Presence was not the same as 60 votes.
What the bill would have done
Clarity is market-structure legislation, the sequel to last year’s GENIUS Act on stablecoins. It would split digital-asset oversight between the SEC and the CFTC, keep securities law from being skirted by labeling tokens as something else, set rules for trading platforms, and try to write a statutory floor under self-custody and noncustodial development. Supporters at BlackRock, Fidelity, Schwab, Goldman, and Coinbase argued the alternative is agency-by-agency enforcement with no durable statute. Opponents argued the draft under-regulated conflicts, illicit finance, and bank-deposit competition.
Majority Leader John Thune framed Tuesday as the “next logical step” after GENIUS. Scott called it the day “everyone [had] to put their cards on the table.” They did. The table did not have 60 cards on it.
Cloture on a motion to proceed is not a funeral by Senate rules. Leadership can file again. Amendments can be rewritten. A lame-duck session still exists on paper.
The calendar does not. The House has already canceled late-September weeks. The Senate has a short September window, then October campaign recess, then a post-election lame duck that will be defined by midterm results. Prediction markets had already repriced the bill before the roll call: passage-this-year contracts on Polymarket and Kalshi ran between the high teens and the mid-30s in the hours before the vote, depending on the platform and the hour. Analysts at TD Cowen and Capital Alpha had the full-year odds in the same neighborhood.
If the 119th Congress does not pass Clarity, the next Congress writes a new bill. Agencies keep making policy by enforcement and rulemaking. The industry stays in the gap between a House-passed statute and a Senate that could not open debate.
Witt said Monday that whether the bill got 60 votes would be “a political calculation, not a policy calculation.” Tuesday proved him right. The policy text was 600-plus pages and a year of talks. The politics were ethics, banks, and a midterm clock. The politics won.
Abra CEO Bill Barhydt joins 'Mornings with Maria' to discuss the impact of the CLARITY Act on tokenization, whether crypto is becoming an asset class or its ...
Before I read this piece, all I knew about tomatoes was that homegrown tastes infinitely better than store-bought. For Offrange, Mitch Hagney educated me on how tomatoes ripen naturally and unnaturally, and how Big Tomato forces the issue in huge warehouses by pumping in ethylene gas. It might just inspire you to grow your own.
Tomatoes are climacteric fruits, like bananas, avocados, and mangos, which means they can be harvested unripe and complete the process later. Ethylene sends the hormonal signal to ripen. When that process happens naturally, cells near its seeds start producing the gas and it diffuses outward through the fruit. Each cell the gas reaches begins its own production, and the cascade softens the flesh and the tomato turns red from the inside out. That allows the fruit to be picked much greener, shipped far, and then ripened when they’re close to their eater.
To do it artificially isn’t complicated, but it is expensive. Ethylene floods the room at carefully calibrated amounts, and the operator compresses what might take weeks into five days. Sensors log temperature, humidity, and gas concentrations around the clock. The tomato turns red from the outside in.