The US Senate failed to advance the Digital Asset Market Clarity Act on Tuesday. The bill did not secure the required 60 votes to clear a procedural hurdle, effectively ending the Senate's push for federal crypto market structure legislation in 2026.
More than 40 senators voted against the motion to proceed. Republicans had previously introduced a revised draft on Sunday containing 126 changes requested by Democrats, including new ethics provisions and expanded enforcement powers for state attorneys general.
Negotiations stalled after Democrats submitted a counterproposal, which Republicans rejected. Senator Cynthia Lummis stated that Democrats returned to their pre-recess positions despite the concessions offered by the Republican side.
Crypto markets declined following the vote. Bitcoin dropped toward $76,000, Ether fell below $2,400, Solana dipped below $97, and XRP moved toward $1.31. These losses followed a brief rally earlier in the week.
The market downturn was exacerbated by broader macroeconomic factors, including declining US equities and rising Treasury yields. Investors are currently anticipating a potential quarter-point interest rate hike from the Federal Reserve.
