The US Senate fell 11 votes short of the 60 needed to open debate on the Clarity Act on Tuesday, stalling a federal framework for digital assets after Democrats demanded stronger limits on President Donald Trump’s crypto interests. The cloture motion received 49 votes in favor and 50 against; it was not a vote on final passage. No Democrat supported advancing the bill, including negotiators Kirsten Gillibrand, Mark Warner, Ruben Gallego and Angela Alsobrooks. Republicans Susan Collins, Josh Hawley and Jerry Moran voted against it, while Thom Tillis also voted no for procedural reasons.

The bill would establish federal rules for cryptocurrency markets and clarify the roles of the SEC and CFTC. Democrats’ counterproposal sought to extend ethics restrictions to federal officials’ dependents and require officials with large stakes in crypto companies to divest. Staff for Senator Tim Scott ended the final bipartisan talks in Tillis’s office just before voting began. “The ethics issue has not been addressed,” Warner said before the vote. Collins had separately raised concerns about community banks losing deposits. After the defeat, Senator Cynthia Lummis accused Democrats of being “never truly serious” about crypto reform.

Coinbase and Circle shares extended losses to around 10% after the vote. Polymarket put the chance of the bill becoming law by the end of 2026 at 7%. Senator John Kennedy said the legislation was not necessarily dead but would have to wait until the lame duck session. Alsobrooks also rejected the idea that the bill would die, saying lawmakers still had a responsibility to regulate the industry.