US Senate Fails to Advance CLARITY Act in 49-50 Vote

The US Senate has failed to advance landmark legislation intended to establish a comprehensive federal framework for digital asset markets in the United States.

A cloture motion on the Digital Asset Market Clarity (CLARITY) Act received 49 votes in favor and 50 against on September 15, falling short of the 60 votes required. Official Senate records show the motion to move toward debating the legislation was rejected.

All voting Democrats opposed the motion, alongside Republican Senators Susan Collins, Josh Hawley, and Jerry Moran. Republican Thom Tillis changed his vote from yes to no so that he could submit a motion to reconsider, preserving the possibility of another vote. However, limited Senate time before November’s midterm elections makes further action this year unlikely.

The CLARITY Act would divide oversight of digital assets between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). It would also require digital commodity exchanges to segregate customer assets from their own funds and monitor trading for manipulation, price distortion, and disruption.

Lawmakers remained divided over ethics restrictions on public officials’ crypto interests, stablecoin rewards, and states’ ability to pursue fraud related to digital assets. Republicans rejected a Democratic counterproposal shortly before the vote, with both parties subsequently blaming the other for the breakdown.

Although the bill may still be reconsidered in the future, its failure leaves the SEC and CFTC to continue developing crypto policy through their existing powers.