Clarity Act fails in Senate, sending crypto lower

The U.S. Senate has begun its final push to hold a key procedural vote on the Digital Asset Market Clarity Act. The bill needs at least 60 votes to advance to a final vote, but as of press time, it is unclear whether the bill has the support it needs to clear this milestone.

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If the bill passes the so-called cloture vote on Tuesday, Senators can continue working on the bill, adding amendments or debating provisions. There will be a few additional votes on the bill before the Senate holds its final vote to pass the legislation.

If the bill fails Tuesday’s vote, that likely spells the end for any crypto market structure legislation in 2026, and with Congress poised to be under split party control next year, it’s unclear when the legislature may get to market structure legislation again.

The Clarity Act essentially defines how federal regulators — the Securities and Exchange Commission and Commodity Futures Trading Commission — can oversee crypto markets. Many of the provisions in the bill are downstream of this fundamental issue: how should crypto be regulated by the federal government?

Because of the 60-vote threshold, the bill needs bipartisan support. As of press time, multiple Democrats had expressed concerns that the ethics provisions in the bill were insufficient to restrain President Donald Trump, whose crypto business ties saw him generate $1.4 billion in revenue in 2025.

Senator Cynthia Lummis, one of the bill’s most outspoken advocates, called for the Senate to pass the vote on the Senate floor on Tuesday, saying the bill was the result of bipartisan efforts.

“This is what good faith looks like, this is what compromise looks like,” she said.