The U.S. Senate failed to advance the Clarity Act during a procedural vote on Tuesday. The legislation, which aimed to establish a regulatory framework for digital assets by distinguishing between securities, commodities, and stablecoins, did not secure the required 60 votes. The final tally was 49 votes in favor and 50 against.
The bill faced opposition from both parties, though Democrats were frequently accused of stalling the process. Senator Elizabeth Warren expressed strong opposition, arguing that the legislation posed significant economic risks. Critics also raised concerns regarding potential conflicts of interest, citing the involvement of President Donald Trump in various digital asset ventures.
A revised draft of the bill, circulated in July, included an ethics provision intended to prevent high-ranking officials, including the president and members of Congress, from issuing digital assets for compensation. A subsequent draft introduced on Sunday proposed granting state attorneys general the authority to enforce these rules alongside the Department of Justice.
Following the news of the bill's failure, the price of Bitcoin experienced a sharp decline, dropping 4% over a 24-hour period to trade at $75 997. Despite the legislative setback, regulators continue to work on establishing rules for the digital asset industry. The Clarity Act had previously passed the House of Representatives last year.
