- The CLARITY Act fell short of the 60 votes needed to advance, with the Senate voting 49-50 on Tuesday.
- Seven Democratic senators said negotiations could continue, while lawmakers assess whether bipartisan talks can restart.
- The SEC and CFTC are advancing crypto rules, including tokenized-stock trading, software relief and broader market regulation.
The Senate’s failure to advance the Clarity Act shifted attention toward U.S. regulators after a 49-50 vote Tuesday. The bill needed 60 votes, but Democrats opposed it alongside Republican Sens. Susan Collins, Josh Hawley and Jerry Moran. Sen. Thom Tillis later switched his vote, preserving a path for another vote.
Senate Vote Ends With Talks Still Open
The vote followed more than a year of bipartisan negotiations on Capitol Hill. Talks continued in the Capitol basement shortly before senators voted, according to Crypto In America. A Democratic staffer said Tillis supported delaying the vote for more negotiations.
However, a staffer for Senate Banking Committee Chair Tim Scott ended those talks without explanation. Democrats and Republicans then offered different accounts of the breakdown. Sen. Cynthia Lummis, the bill’s chief architect, said Democrats were not serious about consumer protection. Democrats involved in negotiations kept the door open to further talks.
Democrats Say Clarity Act Talks Can Continue
Sen. Angela Alsobrooks said the bill was not dead after Tuesday’s vote. She cited more than 70 million Americans engaging in the industry. Sens. Kirsten Gillibrand, Mark Warner, Cory Booker, Catherine Cortez Masto, Ruben Gallego and Raphael Warnock joined Alsobrooks.
The group called the vote a setback, but not the end. According to three sources familiar with discussions, early efforts have started to restart talks. Lawmakers are assessing whether both parties will return to negotiations.
SEC And CFTC Move Ahead With Crypto Rules
The stalled legislation has also drawn attention to regulatory action. Solana Policy Institute President Kristin Smith said the industry now looks to regulators for guidance. SEC Chairman Paul Atkins linked the agency’s new innovation exemption to the Senate’s failure.
The SEC released the measure Thursday, creating a pathway for tokenized U.S. stocks to trade onchain. Meanwhile, the CFTC issued a no-action position covering passive software providers.
The agency also sent a broader crypto markets rulemaking proposal to the White House for review. Details of that proposal remain undisclosed. The move came after the Senate vote shifted attention from congressional negotiations toward federal regulators.
