The U.S. Senate has failed to advance the Digital Asset Market Clarity Act, dealing a major setback to the crypto industry’s effort to establish a permanent federal market-structure framework after months of negotiations in Washington.
Senators voted 49-50 on September 15 against invoking cloture on the motion to proceed to H.R. 3633, according to the official Senate roll call. Under Senate rules, 60 votes were required to overcome the procedural hurdle and begin consideration of the legislation.
The vote was not a final vote on passage. The bill remains alive and could theoretically be reconsidered, but the result prevents it from moving forward in its current legislative sequence.
Three Republicans — Susan Collins, Josh Hawley and Jerry Moran — joined Democrats in opposing cloture. Republican Senator Thom Tillis also ultimately voted against the motion for procedural reasons, allowing supporters the possibility of seeking reconsideration.
The setback came despite extensive negotiations and a revised Republican proposal released shortly before the vote.
Bipartisan Negotiations Break Down
The CLARITY Act seeks to establish clearer jurisdictional boundaries between the Securities and Exchange Commission and Commodity Futures Trading Commission while creating rules for digital-asset issuers, exchanges and intermediaries.
The Senate Banking Committee had advanced the legislation 15-9 in May after months of negotiations, including Democratic support. That bipartisan coalition did not survive Tuesday’s floor vote.
Democratic objections centered on several issues, including ethics provisions governing federal officials’ crypto interests, national-security protections and the treatment of stablecoin rewards. Banking groups had separately warned that interest-like rewards offered through stablecoin platforms could draw deposits away from traditional banks.
Republicans made late revisions intended to address those concerns, including additional enforcement authority for state attorneys general and provisions giving the Treasury secretary powers to respond to stablecoin-related deposit flight.
Senate Banking Committee Ranking Member Elizabeth Warren nevertheless urged colleagues to reject the legislation, arguing that the revised ethics restrictions remained insufficient. Republicans, including Banking Committee Chairman Tim Scott, maintained that the proposal incorporated extensive bipartisan negotiations and stronger consumer protections.
Bitcoin and Crypto Stocks Sell Off
Markets reacted quickly as the prospects for comprehensive legislation deteriorated.
Bitcoin fell below $76,000 following the vote, having traded above $77,000 earlier in the session. Coinbase shares closed roughly 10% lower, while stablecoin issuer Circle dropped more than 11%. Strategy also declined as crypto-linked equities tracked weakness across digital assets.
The legislative setback leaves federal regulators carrying more responsibility for establishing U.S. crypto rules through existing statutory authority.
SEC Chairman Paul Atkins said ahead of the vote that his agency would continue modernizing securities regulation regardless of whether Congress passed CLARITY, while also arguing that legislation remains important because agency-level policies can be reversed by future administrations.
The immediate challenge is therefore durability. Administrative changes can provide crypto companies with greater regulatory certainty under the current government, but only legislation can establish a framework that is substantially harder for subsequent regulators to unwind.
With the 2026 midterm elections approaching, the failed 49-50 vote leaves the timing of another Senate attempt uncertain and delays what had become the crypto industry’s principal legislative objective in Washington.