The CLARITY Act failed its Senate procedural vote on Tuesday, falling short of the 60 votes needed to push the crypto market structure bill toward the floor.
Circle Internet Group (CRCL) dropped 11.61% to $86.11 by 2:42 p.m. ET. The stablecoin issuer had been the clearest stock market proxy for the bill’s odds.
Why 41 Senators Were Enough to Stop the Bill
The vote was on cloture, the step that closes debate so a bill can move forward. It requires 60 of 100 senators. Once 41 voted no, the motion was dead.
The measure, formally the Digital Asset Market Clarity Act, would divide federal oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The House passed it in 2025. Senators Cynthia Lummis, John Boozman, and Tim Scott led the Senate effort.
BeInCrypto reported hours earlier that the revised bill text faced opposition from bank trade groups, 18 state attorneys general, and Senator Elizabeth Warren. Republicans had published that text over the weekend and called it a final offer to Democrats.
What the Stall Means for Circle and Other Crypto Firms
Without the law, exchanges and token issuers must keep satisfying both agencies at once. That dual compliance burden was the problem the bill promised to remove.
Circle issues USD Coin (USDC), the second largest dollar-pegged stablecoin. Shareholders had treated clearer federal rules as a path to wider distribution deals with banks and payment firms.
Other crypto assets had rallied into the vote, with XRP and Stellar climbing on Monday as traders positioned for passage.
The defeat does not end the bill. Senate leaders can schedule another cloture vote, though nothing forces them to do so before the year runs out.
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