Clarity Act Stalls After 49&50 Senate Procedural Vote

The Senate voted 49&50 to block a procedural step that would have advanced the Clarity Act, with lawmakers from both parties opposing the motion. The legislation aimed to establish a comprehensive federal framework for regulating digital assets for the first time. Democratic negotiators said they opposed the measure over ethics concerns tied to President Donald Trump's crypto holdings and his administration's role in shaping industry rules. Sen. Catherine Cortez Masto said the bill could have undermined law enforcement efforts against bad actors and would have left prediction markets operating largely unchanged. Sen. Ruben Gallego said he would not back legislation that "enabled Trump." Sen. Angela Alsobrooks said lawmakers had been close to a deal ahead of the vote, adding that Republican leaders ended talks at the last minute. Republican Sen. Cynthia Lummis countered that Democrats were not serious about consumer protection or maintaining U.S. leadership. White House crypto adviser Patrick Witt called the outcome a major disappointment, warning it could raise the odds that future financial market standards are set in Brussels or Beijing instead of Washington and New York. Sen. Thom Tillis initially voted in favor of the procedural measure before switching to no, then moved to allow reconsideration. Tillis said the move would keep lawmakers working toward a positive result. Crypto Council for Innovation CEO Ji Hun Kim said the motion could allow another cloture vote within the next two days. A Republican Senate aide said they believed the bill was effectively dead. Even if the bill clears the Senate, it would still require House approval. A House vote is not expected until after the November elections. Anchorage Head of Digital Policy Kevin Wysocki said senators who voted no could still support the bill after further work on the details. Kristin Smith of the Solana Policy Institute said the Securities and Exchange Commission and the Commodity Futures Trading Commission will continue developing crypto policy. Blockchain Association CEO Summer Mersinger said the group would keep engaging both Democrats and Republicans.