US Senate Fails to Advance Landmark Crypto CLARITY Act

The U.S. Senate failed to advance a landmark cryptocurrency regulatory bill on Tuesday, dealing a significant setback to efforts to create a comprehensive federal framework for digital assets. The procedural vote on the Digital Asset Market Clarity Act, known as the CLARITY Act, fell short of the 60 votes needed to open debate, receiving 49 votes in favor and 50 against. The defeat leaves the future of the legislation uncertain, with little time remaining in the congressional calendar before the November midterm elections and the start of a new session in 2027. The bill aimed to establish clear regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission, while setting compliance rules for crypto exchanges, brokers, and dealers. Digital asset prices reacted sharply to the vote. Bitcoin briefly fell below $75,000, dropping more than 5% on the day. The derivatives market saw immediate liquidations, with over $300 million in long positions closed within 20 minutes of the result. Crypto-linked stocks also declined, with Circle Internet Group and Coinbase Global both underperforming broader market indexes ahead of the vote.