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.

“Several Democrats who have spent months negotiating the Clarity Act, including Gillibrand, Warner, Booker, Warnock, Gallego, Alsobrooks and Cortez Masto, have all voted NO. One industry leader just texted me: “It died.”” Eleanor Terrett, host of Crypto America podcast, shared.

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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. Robinhood stock, HOOD, fell alongside Circle’s CRCL.

Other crypto assets had rallied into the vote, with XRP and Stellar climbing on Monday as traders positioned for passage. When the news hit, the gains eased, with crypto, including Bitcoin, dipping before a recovery.

Nevertheless, 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.

In a statement to BeInCrypto, Raiku CEO Robin Nordnes argued that the vote changes the timeline rather than the direction.

“The capital that couldn’t move under the current regime wasn’t sitting idle. BlackRock, Visa and Western Union built their frameworks under MiCA and they’re live on Solana… Today’s vote tells you how long that head start extends, not whether it exists.”

Europe’s Markets in Crypto-Assets (MiCA) rules have been in force since 2024, and Solana (SOL) has drawn issuers building under them.

Source: BeInCrypto