The CLARITY Act, a bill aimed at establishing a regulatory structure for digital assets, failed to pass a key cloture vote in the US Senate on Tuesday. The measure received 49 votes in favor and 50 against, falling short of the 60-vote threshold required to end debate and proceed to a final vote.
Republican Senator Thom Tillis, who initially supported the bill, switched his vote to no as a procedural maneuver. This action allows him to file a motion to reconsider, potentially keeping the legislation alive during the current session. However, the Senate is scheduled to enter recess on October 2.
Negotiations remain stalled over ethics provisions, specifically regarding the financial interests of President Donald Trump. Democrats have requested further restrictions on the President's use of his office for personal gain, citing his reported 1.4 billion dollars in crypto earnings for 2025.
Republicans previously incorporated 126 substantive changes requested by Democrats, including tighter ethics rules and enforcement roles for state attorneys general. Despite this, seven Democratic senators who voted against the bill stated they remain committed to enacting digital asset regulation.
The industry points to the precedent of the GENIUS bill, which failed a cloture vote in May 2025 but passed the Senate 11 days later. Meanwhile, the SEC and CFTC continue to advance crypto-related rulemaking and guidance independently of the legislative process.
