The Senate failed to invoke cloture on the Digital Asset Market Clarity Act on Tuesday, with 50 senators voting against the motion and the bill falling short of the 60 votes needed to advance to debate.

The vote was 49 in favor and 50 against, meaning the bill needed at least seven Democrats to cross the aisle. Tuesday’s action was a cloture vote on H.R. 3633, not a final vote on the legislation itself. Cloture determines whether the Senate can proceed to formal debate, but the failed motion effectively ends the bill’s prospects for 2026.

Bitcoin declined as the “no” votes accumulated. The cryptocurrency fell from a session high near $77,200 to about $75,600 before recovering some ground to trade near $75,800, down approximately 3.2% on the day. At one point during the vote, Bitcoin was down 1.3% in an hour and nearly 4% for the day, trading around $76,000.

The bill’s failure came with only about 22 working days remaining on the Senate calendar before midterm campaigning takes over. Sen. Cynthia Lummis (R-Wyo.), the legislation’s lead Republican negotiator, had warned before the vote that defeat could be final, suggesting there was little room left to negotiate the bill’s language with Democrats.

“It's now or never for the Clarity Act.,” Lummis wrote, arguing that Republicans had already accepted more than 120 changes requested by Democrats over the previous year.

It's now or never for the Clarity Act. Dems can lock in 120+ negotiated wins: a historic ethics agreement covering the President, VP, Congress \u0026 federal judges, plus the certainty consumers and this industry need. To get there, Democrats need to join us in voting yes at 2:15. — Senator Cynthia Lummis (@SenLummis) September 15, 2026

It's now or never for the Clarity Act. Dems can lock in 120+ negotiated wins: a historic ethics agreement covering the President, VP, Congress \u0026 federal judges, plus the certainty consumers and this industry need. To get there, Democrats need to join us in voting yes at 2:15. — Senator Cynthia Lummis (@SenLummis) September 15, 2026

Senate Banking Committee ranking member Elizabeth Warren delivered a floor speech opposing the bill, warning that its passage would trigger a “crypto-fueled economic crash.”

Why the bill stalled

Three disputes prolonged negotiations over the legislation. Banks sought language that would prohibit crypto companies from paying yield on stablecoins, arguing that such payments could draw deposits away from traditional bank accounts. Eight banking trade groups called for even tighter restrictions just days before the vote.

Democrats sought stronger conflict-of-interest provisions in light of President Donald Trump’s personal crypto holdings. Software developers, meanwhile, wanted explicit protection from criminal liability for creating non-custodial tools.

Senate Republicans released a revised, 630-page draft late Sunday night in an effort to address all three issues. The draft added a state attorney general enforcement role related to ethics provisions and softened language concerning developer liability. The changes did not secure enough Democratic support to advance the bill.

Bitcoin and crypto markets react

Bitcoin reached approximately $77,200 shortly before the vote began and then traded within a narrowing range during the early proceedings. Around 2:30 p.m. ET, it fell from roughly $76,900 to the session low near $75,600 in about 10 minutes, as the “no” tally passed 40.

The move left Bitcoin nearly 4% lower on the day and well below its September peak near $82,000. The decline was orderly rather than a rush for the exits, with market participants having already priced in much of the negative news.

Polymarket odds that the Clarity Act would become law in 2026 had dropped to 17% by Tuesday morning, down from approximately 34% on Monday. The decline followed Republicans’ rejection of a Democratic counteroffer just hours before the vote.

The broader crypto market fell nearly 3% after recovering quickly from a post-vote sell-off that had pushed losses above 4.2%.

The Digital Chamber, a crypto trade group, described the Senate result as a “setback” rather than a defeat in a post on X and said it remained committed to passing comprehensive digital asset regulation. Its statement is available at https://x.com/DigitalChamber/status/2099934169958633836.

With Congress facing roughly three weeks of working days before the fall session gives way to midterm campaigning, the rulemaking processes of the Securities and Exchange Commission and the Commodity Futures Trading Commission now represent the closest regulatory timeline available to U.S. crypto markets for 2026. Treasury Secretary Scott Bessent has previously pointed to those processes as a fallback if legislation stalls.

Source: https://decrypt.co/378286/crypto-clarity-act-fails-clear-senate-bitcoin-slides