The U.S. Senate on Tuesday failed to advance the Clarity Act, leaving a sweeping effort to establish a federal regulatory framework for digital assets stalled in Congress.
The procedural motion received 50 votes in favor and 49 against, with one senator not voting. Because Senate rules require 60 votes to advance the legislation, the measure fell 10 votes short of the threshold. The vote was a procedural step toward advancing the bill, rather than a final vote on the legislation itself
The bill would establish a broader federal framework for digital assets, including rules governing the issuance and trading of cryptocurrencies and a division of regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The vote came after Senate Republicans released a substantially revised version of the legislation. The new draft incorporated 126 changes sought by Democrats, including tighter restrictions on public officials profiting from crypto-related ventures
Banking groups also raised concerns about provisions involving stablecoins, arguing that the legislation could allow stablecoin products to compete with traditional bank deposits and potentially affect banks’ funding and lending models.
Four Republicans joined Democrats in voting against advancing the bill. Senator Thom Tillis switched his procedural vote to no, a move that preserves the possibility of seeking reconsideration under Senate procedure.
The failed vote leaves the legislation without enough support to proceed under the current timetable. The SEC and CFTC therefore remain the principal federal regulators overseeing digital-asset markets under existing law, while lawmakers continue to debate how Congress should define the regulatory framework for cryptocurrencies.
For the crypto industry, the immediate significance is not that the Clarity Act was defeated on final passage, but that the Senate did not secure the 60 votes required to move the bill to the next stage.