The CLARITY Act failed to clear a key Senate procedural hurdle after lawmakers voted 49 - 50 against invoking cloture, sharply reducing expectations for the crypto bill in 2026.
BTC$75,863.00-1.99%The CLARITY Act suffered a major setback Tuesday after the U.S. Senate failed to invoke cloture on the motion to proceed with the crypto market structure bill.
Senators voted 49 - 50, falling well short of the 60 votes required to advance the legislation toward floor consideration. The procedural defeat came after weeks of negotiations over crypto regulation, stablecoin rewards and ethics provisions involving federal officials.
The vote marks a significant setback for the bill after Republicans and Democrats failed to reach a bipartisan agreement before the Senate's deadline.
The latest development also sharply changed expectations in prediction markets. Polymarket traders now give the CLARITY Act only about a 5% chance of becoming law in 2026, down from roughly 30% just one day earlier.
The Senate vote was on cloture for the motion to proceed to H.R. 3633, rather than a final vote on the CLARITY Act itself.
The bill needed 60 votes to clear the procedural hurdle. Instead, the motion received 49 votes in favor and 50 against.
No Democrat voted to advance the legislation, while several Republicans also opposed the motion. Sen. Thom Tillis, who had been deeply involved in negotiations over ethics and stablecoin provisions, voted against the motion and moved to recommit the bill.
Senators Angela Alsobrooks, Ruben Gallego and Kirsten Gillibrand were among the Democrats who voted against advancing the measure. Republicans Susan Collins, Josh Hawley and Jerry Moran also voted no.
The result means the Senate will not immediately move into full consideration of the legislation.
Senate Majority Leader John Thune could still file another cloture motion, leaving open a procedural path for the bill to return. However, the failed vote shows that the bipartisan support needed to reach 60 votes was not available at Tuesday's vote.
The procedural defeat triggered an immediate repricing in prediction markets.
Polymarket traders had put the probability of the CLARITY Act becoming law in 2026 at around 30% on Monday. Following the failed Senate vote, that figure fell to approximately 5%.
The sharp move reverses the optimism seen earlier in the week, when Republicans released a revised version of the legislation and negotiations appeared to be moving toward a potential compromise.
Related: CLARITY Act odds plunge as Republicans reject Democrats’ counter-proposal
The latest vote takes that uncertainty a step further by showing that the Senate currently lacks the votes needed to move the bill forward.
The final negotiations centered heavily on ethics provisions involving federal officials and their families.
Republicans had made substantial changes to the bill in an effort to address Democratic concerns. The revised proposal included restrictions on certain digital-asset activities involving federal officials, along with additional enforcement powers for state attorneys general.
President Donald Trump also agreed to key parts of a bipartisan ethics framework negotiated by Tillis and Democratic Sen. Ruben Gallego. The agreement included measures covering crypto holdings and enforcement of restrictions.
Democrats nevertheless argued that the provisions did not go far enough.
Their counterproposal sought additional restrictions, including coverage of dependent children of federal officials. Gallego criticized the Republican approach after the vote and argued that the remaining provisions did not adequately address concerns surrounding Trump's crypto interests.
Republicans, meanwhile, argued that Democrats had not moved sufficiently from their earlier position. Sen. Cynthia Lummis had criticized the Democratic counterproposal before the vote, saying Republicans had already made substantial concessions.
The disagreement ultimately prevented the two sides from producing the bipartisan support needed for cloture.
Ethics rules were not the only obstacle.
A group of 18 state attorneys general also opposed the legislation shortly before the vote. They argued that the CLARITY Act could weaken states' ability to pursue crypto-related fraud and misconduct.
That added another layer of opposition just as lawmakers were trying to finalize the legislation.
The issue is important because the CLARITY Act is designed to establish a federal framework for digital assets while dividing regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Supporters argue that clearer federal rules could reduce uncertainty for crypto companies and investors. Critics have raised concerns over enforcement authority, consumer protection and the scope of federal preemption.
The failed cloture vote leaves the United States without the comprehensive federal market-structure framework that the CLARITY Act was designed to establish.
Among other provisions, the legislation would clarify the respective roles of the SEC and CFTC in overseeing digital assets.
Without congressional action, those jurisdictional questions remain unresolved at the legislative level.
The timing also matters. Congress has less than 36 legislative days remaining before the new congressional session begins in 2027 following the November midterm elections, according to reporting on the Senate setback. That leaves a limited window for lawmakers to revisit the legislation during the current session.
The failed vote does not formally end the bill's legislative path, since Senate leadership can seek another vote. But any further movement would require lawmakers to find enough bipartisan support to clear the 60-vote threshold.
The Senate setback also coincided with a sharp decline across crypto markets.
Bitcoin briefly fell below $75,000 on September 15, reaching roughly $74,900 and declining more than 4% from earlier levels. Market observers attributed the move partly to uncertainty surrounding the CLARITY Act, although the Federal Reserve's policy decision and broader macroeconomic pressures were also affecting risk assets.
Other major crypto assets also declined as traders reacted to the failed vote.
XRP was among the larger movers, with reports showing a decline of more than 9% over 24 hours, while Ether and Solana also moved lower.
The reaction follows several weeks in which the CLARITY Act had become an increasingly important regulatory catalyst for crypto markets.
Related: Bitcoin, Ethereum and XRP price outlook after CLARITY Act vote delay
The failed cloture vote puts the CLARITY Act at another major crossroads.
Republicans and Democrats remain divided over ethics requirements, stablecoin rewards and enforcement powers, while state attorneys general have raised separate concerns about state-level authority.
For now, the Senate has not advanced the bill toward full consideration.
A new cloture motion remains procedurally possible, but any attempt to revive the legislation would still require lawmakers to bridge the disagreements that produced Tuesday's 49 - 50 vote.
For the crypto industry, the immediate result is another delay in establishing a comprehensive federal market-structure framework, while Bitcoin and other digital assets absorb the market impact of the legislative setback.
The CLARITY Act faces another setback as Republicans reject a Democratic counter-proposal, sending prediction-market odds sharply lower ahead of a key Senate vote.
Public crypto treasury companies continued buying Bitcoin, Ethereum, and Solana through a volatile September, while Strategy paused Bitcoin purchases ahead of the Federal Reserve's rate decision.
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Bitcoin is holding near $77,000 as the Senate prepares to vote on the CLARITY Act while surging oil prices and Treasury yields create fresh pressure for risk assets.
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