- The U.S. Senate failed to advance the Digital Asset Market Clarity Act after the legislation fell short of the 60 votes needed to clear a key procedural hurdle.
- More than 40 senators voted against advancing the bill in an unofficial tally, likely ending the Senate’s crypto market structure push for 2026.
- Bitcoin fell toward $76,000 following the vote, while Ethereum dropped below $2,400, Solana below $97 and XRP toward $1.31.
The U.S. Senate failed to advance the Digital Asset Market Clarity Act on Tuesday, delivering a major setback to efforts to establish comprehensive federal rules for crypto markets.
The procedural vote concerned invoking cloture on the motion to proceed, meaning senators were voting on whether to begin debate rather than on final passage of the legislation.
The bill needed 60 votes to advance but fell short, with more than 40 senators voting against moving forward, according to an unofficial tally from the Senate floor webcast.
With the November midterm elections approaching, the failed vote leaves lawmakers with limited time to revive the legislation and could effectively end the Senate’s market structure effort for 2026.
Bitcoin Falls Toward $76,000 After Vote
Crypto markets moved lower following the Senate vote.
Bitcoin fell toward $76,000, while Ethereum dropped below $2,400. Solana slipped below $97 and XRP moved toward $1.31.
The declines reversed much of the optimism that had pushed Bitcoin toward $80,000 earlier in the week.
Bitcoin reached approximately $79,600 on Monday as traders increased bets that lawmakers could reach an agreement on the legislation.
Political uncertainty had already pushed BTC below $77,000 before Tuesday’s vote, with the failed procedural attempt adding further pressure.
Democrats and Republicans Fail to Reach Agreement
Senate Republicans released a revised version of the CLARITY Act on Sunday that they said contained 126 substantive changes requested by Democrats.
Those revisions included stricter ethics provisions, expanded enforcement powers for state attorneys general and changes intended to address banking industry concerns over stablecoin rewards.
The revised legislation initially raised expectations that Republicans could secure enough Democratic votes to move forward.
However, Democrats submitted another counterproposal late Monday seeking additional changes, which Republicans rejected Tuesday morning.
Senator Cynthia Lummis, one of the leading Republican negotiators, said Democrats had largely returned to positions held before the August recess despite concessions made by Republicans.
Democratic concerns included ethics provisions and restrictions on state enforcement powers, while banking groups continued opposing parts of the bill involving stablecoin rewards.
Crypto Market Structure Push Faces New Delay
The failed CLARITY Act vote comes alongside additional pressure from the broader macro environment.
U.S. equities declined and Treasury yields moved higher ahead of Wednesday’s Federal Reserve decision, with markets pricing a high probability of a quarter-point rate increase.
The combination of higher yields, expectations for tighter monetary policy and the failed Senate vote quickly reversed the bullish setup that had pushed Bitcoin close to $80,000 a day earlier.
With the legislation now stalled, the crypto industry remains without a comprehensive federal market structure framework.
Attention could now shift toward whether negotiations can restart after the November midterm elections.
