The US Senate failed on Tuesday to advance comprehensive cryptocurrency legislation supported by President Donald Trump. This represents a significant setback for companies operating with digital assets, as well as for Republicans who had advocated for the bill for months.
US Senate
The bill, named the Clarity Act, did not reach the required threshold of 60 votes needed to advance most legislative acts in the 100-member chamber. Four Republican senators—Jerry Moran, Susan Collins, Josh Hawley, and Tom Tillis—joined all Democrats in voting against it. The final vote passed 50 to 49.
This result effectively froze the bill, as the US Congress plans to leave Washington this month before the November midterm elections. In these elections, Trump-aligned Republicans are fighting to maintain control of the House of Representatives and the Senate.
Tom Tillis changed his vote from 'yes' to 'no' as part of a procedural maneuver that allows him to later bring the issue up for reconsideration. On Sunday evening, Republican senators presented a new version of the bill in a last attempt to address concerns from the banking sector and some Democrats, but opponents remained unwavering.
The goal of the Clarity Act was to establish a regulatory framework for digital assets, which crypto companies argued would provide them with a stronger legal foundation. The industry, possessing substantial financial resources, spent hundreds of millions of dollars campaigning to pass this law.
Trump, who earned over $1.4 billion from his family's crypto ventures, strongly urged Congress to pass the legislation. During the 2024 election campaign, Trump attracted funds from the crypto industry, referring to himself as a 'crypto-president.'
Challenges
Regulators, specifically the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC), will now be forced to fill the policy gap regarding cryptocurrencies. However, efforts to develop favorable rules for the digital asset industry may prove difficult.
Industry experts stated that only Congress can create a long-term regulatory system. Without enacted legislation, rules will be subject to the influence of the changing political climate and litigation, creating constant risks for the crypto industry, according to executives and analysts.
Coinbase CEO Brian Armstrong noted on social media after the vote on Tuesday: 'The Clarity Act did not advance in the Senate today, which is disappointing.' He added that 'the SEC and CFTC have the tools necessary to create clear rules within the existing jurisdiction, and I expect them to start working on this seriously.'
Bitcoin, the world's largest cryptocurrency, fell by more than 5% as the vote appeared doomed, marking the largest single-day percentage drop since June. Shares of the crypto exchange Coinbase and stablecoin issuer Circle dropped by 10%.