The U.S. Senate rejected a cloture motion on Tuesday, effectively halting the progress of the Clarity Act. This procedural vote required 60 votes to limit debate and move forward with the legislation, but it failed to reach the necessary threshold.
The proposed bill aimed to establish a federal regulatory framework for cryptocurrency markets in the United States. Its primary goals included clarifying the specific oversight responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Legislators spent months negotiating various provisions of the bill, including rules regarding stablecoin rewards, safeguards against illicit financial activities, and ethics restrictions related to President Donald Trump's interests in the crypto sector.
Senator Cynthia Lummis of Wyoming, a primary advocate for the bill, stated that the failure to clear this procedural hurdle effectively ends the legislation's chances. The vote took place following a delay that extended past the Senate's August recess.
