The Senate failed to advance the Clarity Act on Tuesday in a procedural vote that fell short of the 60 votes needed. Democrats voted as a bloc against the bill, joined by Republican Senators Susan Collins, Josh Hawley, and Jerry Moran. Senator Thom Tillis initially voted yes before switching to no, a move that preserves the option to bring the bill back later. The final tally was 49-50.
The failed vote came after more than a year of bipartisan negotiations. According to a Democratic staffer, talks continued in the Capitol basement until the vote began, with Senator Tillis willing to delay further discussions. However, a staffer for Senate Banking Committee Chair Tim Scott abruptly ended negotiations without explanation.
The breakdown prompted accusations from both sides. Republican Senator Cynthia Lummis, the bill's chief architect, said Senate Democrats were never serious about protecting consumers. Democrats countered that Republican leaders forced the vote prematurely to shield other interests.
Despite the defeat, some Democrats who voted against the bill say it is not finished. Seven negotiating Democrats—Senators Angela Alsobrooks, Kirsten Gillibrand, Mark Warner, Cory Booker, Catherine Cortez Masto, Ruben Gallego, and Raphael Warnock—issued a joint statement calling the vote "a setback, but not the end" and committing to bipartisan work ahead. Early efforts to restart negotiations are underway, according to sources familiar with the discussions.
With industry fatigue mounting, attention has shifted to federal regulators. Kristin Smith, president of the Solana Policy Institute, said regulatory guidance is "the more viable path forward right now."
Both agencies are moving forward. SEC Chair Paul Atkins explicitly tied the agency's new tokenized-stock innovation exemption to the Clarity Act's failure. The SEC released the measure on Thursday, opening a pathway for tokenized U.S. stocks to trade on blockchain networks. The CFTC has also issued a no-action position for passive software providers and submitted a broader crypto markets rulemaking proposal to the White House for review.
