Senate blocks CLARITY Act procedural motion; Circle shares slide 11%

The CLARITY Act failed to clear a key procedural hurdle in the U.S. Senate on Tuesday, as supporters came up short of the 60 votes required to advance the crypto market structure measure to the floor. Circle Internet Group (CRCL) fell 11.61% to $86.11 as of 2:42 p.m. ET. Investors had viewed the stablecoin issuer as one of the most direct public-market gauges of the bill's prospects. The vote was on cloture, the motion used to end debate and move legislation forward. With 41 senators voting "no," the effort failed. The legislation, formally titled the Digital Asset Market Clarity Act, would split federal oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The House passed the bill in 2025. Senators Cynthia Lummis, John Boozman, and Tim Scott led the Senate push. BeInCrypto reported earlier that a revised version of the bill drew resistance from bank trade groups, 18 state attorneys general, and Sen. Elizabeth Warren. Republicans released the updated text over the weekend and described it as a final offer to Democrats. Without the law, exchanges and token issuers must continue navigating overlapping expectations from both the SEC and the CFTC, maintaining the dual compliance burden the measure sought to address. Circle issues USD Coin (USDC), the second-largest dollar-pegged stablecoin. Shareholders had anticipated that clearer federal rules could support broader distribution agreements with banks and payments companies. Other crypto assets rallied into the vote, with XRP and Stellar rising on Monday as traders positioned for a potential advance. The setback does not end the bill. Senate leaders can schedule another cloture vote, though there is no requirement to do so before year-end.