The Senate rejected cloture on the Clarity Act on Tuesday with a vote of 49 to 50, falling short of the 60-vote threshold required to advance the bill. All Democrats voted against the procedural motion, while Republican Senator Susan Collins also voted no. Bill sponsor Cynthia Lummis acknowledged the outcome earlier in the day, saying "It's over."
Negotiations between senators collapsed in the final hour. Staff for Senator Tim Scott ended discussions on ethics provisions in Senator Thom Tillis's office without reaching resolution. Republicans had made concessions in a Sunday draft that included state attorney general enforcement and divestment requirements, which President Trump had approved. Democrats circulated a counterproposal hours before the vote but the parties could not reach agreement.
The vote was procedural, determining whether to take up the bill for consideration rather than final passage. While the bill could still pass before the year ends, time is limited. The Senate breaks in early October for midterm elections, and control of either chamber could shift in November. Betting markets now place the odds of the bill passing in 2026 at just 5%.
Crypto markets declined following the vote. Bitcoin fell to $75,960, down 4% and reaching its lowest level since August 21. Ethereum lost 5.4% to $2,401, Solana fell 5.1% to $98.15, and XRP declined 9.4%. Crypto-focused equities also sold off, with Coinbase falling nearly 9% and Circle declining 9.4%.
Despite the legislative setback, regulatory action has continued under existing authority. The CFTC has directed staff to write rules under current law. The SEC proposed allowing blockchains to serve as official stock ownership records and scheduled a 24-hour trading roundtable for Thursday. The CFTC moved to dismiss a CME lawsuit over perpetual futures, and Coinbase filed to bring single-stock perpetuals onshore. These actions occurred within three weeks without statutory changes.
Stand With Crypto announced it will score senators' votes on the Clarity Act in its public lawmaker ratings ahead of November elections, with executive director Mason Lynaugh calling the failure a failure of leadership and urging crypto voters to participate in the ballot box.
