US Senate Blocks Trump-Backed Crypto Clarity Act

The United States Senate blocked the Digital Asset Market Clarity Act on Tuesday, failing to reach the 60-vote threshold required to advance the legislation. The procedural motion to proceed received 50 votes in favor and 49 against, with all Democrats and four Republicans—Susan Collins, Josh Hawley, Jerry Moran, and Thom Tillis—voting against the measure. The 600-page bill aimed to establish a comprehensive federal regulatory framework, dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Donald Trump backed the legislation, but it stalled due to deep partisan divisions over ethics safeguards. Democrats, led by Senator Elizabeth Warren, argued the bill contained loopholes that would allow the president and his family to profit from their digital-asset ventures, including World Liberty Financial. Republicans countered that they had made over 100 revisions to the draft, including concessions on the Tillis-Gallego ethics framework, but Senator Cynthia Lummis declared the effort dead following the vote.

The legislative failure triggered a sharp cryptocurrency market decline. Bitcoin fell below $76,000, and XRP dropped over 10%, erasing gains from August. U.S. spot Bitcoin ETFs saw their heaviest single-day outflow since June, shedding over $450 million. Industry leaders from Coinbase and Ripple expressed frustration, suggesting that federal agencies must now provide regulatory certainty using existing authorities. With Congress entering its October recess ahead of the November midterms, the bill's prospects for passage in 2026 are now considered low.