TLDR
- The Senate rejected a motion to advance the CLARITY Act, falling short 49-50 of the 60 votes needed
- Democrats raised concerns over President Trump’s crypto investments during the vote
- Crypto industry leaders say they will now focus on the SEC and CFTC for guidance
- Senator Thom Tillis moved to reconsider the vote, keeping a path open for another attempt
- Polymarket odds of the CLARITY Act passing in 2026 fell to 5%, the lowest since January
The CLARITY Act, a bill meant to set clear rules for digital assets, failed to advance in the US Senate on Tuesday. The vote fell short of the 60 votes needed to invoke cloture, ending 49-50.
Democrats raised concerns over President Donald Trump’s crypto investments during the vote. Their objections helped block the bill from moving forward.
Crypto industry leaders called the result a disappointment. Many said they will now focus on financial regulators instead of Congress.
Fireblocks US policy director Jessica Martinez said the company plans to keep working with the SEC and CFTC. She made the comment before Tuesday’s vote during an interview with Cointelegraph’s Chain Reaction.
Industry Reaction to the Vote
Ripple CEO Brad Garlinghouse reacted to the failed vote on social media Tuesday. He said regulators will continue working to issue rules that fill the gap left by Congress.
SEC Chair Paul Atkins also spoke about crypto rules this week. He repeated his commitment to clearer regulations at the Solana Policy Institute Summit on Monday.
Not everyone is confident that agency rules can replace legislation. NEAR chief legal officer Abhishek Vaidyanathan said rejecting the bill leaves firms dependent on agency guidance instead of clear law.
Vaidyanathan added that firms setting 2027 budgets could face more delays. He said companies may return to case-by-case legal decisions while counterparties price in ongoing uncertainty.
Bitget Wallet chief operating officer Alvin Kan echoed similar concerns. He told Cointelegraph the vote failure means continued uncertainty over how securities, commodities and money-transmission rules apply to crypto products.
Path Forward for the Bill
The CLARITY Act may not be finished yet. Senator Thom Tillis moved to reconsider Tuesday’s failed cloture vote.
That motion keeps a procedural path open for another vote. Industry executives are split on how long the delay will last.
1inch chief legal officer Orest Gavryliak said the result was a delay, not a final decision. He said legislation this large rarely moves in a straight line and another cloture vote can happen.
Vaidyanathan was less hopeful about quick action. He said the next Congress is the more likely time to address crypto market structure.
He pointed to the calendar as a reason. The House has canceled its sessions for the weeks of September 21 and 28.
The Senate’s state work period begins October 5, ahead of the November 3 election. This leaves little time for lawmakers to act this year.
Prediction markets are also showing less confidence in the bill. Polymarket odds of the CLARITY Act being signed into law in 2026 fell to 5% on Tuesday.
That is the lowest probability recorded since the market opened in January. It shows traders now see the bill’s chances as slim for the rest of this year.
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