Clarity Act fails 49-50 Senate procedural vote as future remains disputed

The Senate voted 49-50 against a procedural measure to advance the Clarity Act. Both Republicans and Democrats voted against the measure. The bill would have regulated digital assets comprehensively for the first time at the federal level. Key Democratic negotiators said ethics concerns drove their opposition. Those concerns involved Trump's crypto wealth and his administration's role in writing industry rules. Sen. Catherine Cortez Masto said the bill could have weakened law enforcement efforts against bad actors. She also said it would have allowed prediction markets to continue operating as before. Sen. Ruben Gallego said he would not support legislation that enabled Trump. Sen. Angela Alsobrooks said lawmakers were ready to reach a deal before the vote. Alsobrooks and other Democrats said Republican leadership ended discussions at the last minute. Republican Sen. Cynthia Lummis said Democrats were not serious about protecting consumers or preserving American leadership. White House crypto advisor Patrick Witt called the vote a major disappointment. Witt said the result could increase the risk that future financial market standards would come from Brussels or Beijing rather than Washington and New York. Sen. Thom Tillis initially voted for the measure and later changed his vote to no. Tillis then sought to enter a motion to reconsider the vote. Tillis said the motion allowed lawmakers to continue working toward a positive outcome. Crypto Council for Innovation CEO Ji Hun Kim said the motion allowed another cloture vote within the next two days. One Republican Senate aide said they believed the bill was dead. If the bill passes the Senate, it would still need approval from the House. A House vote would not be possible until after the November elections. Anchorage Head of Digital Policy Kevin Wysocki said senators who voted no could still support the bill after more work on its details. Kristin Smith of the Solana Policy Institute said the Securities and Exchange Commission and the Commodity Futures Trading Commission would continue developing crypto policy. Blockchain Association CEO Summer Mersinger said the group would continue talks with Democrats and Republicans.