US Senate crypto bill collapses in blow to industry

The US Senate failed to advance the Digital Asset Market Clarity Act after the measure did not reach the 60 votes needed to move to debate, effectively stalling the first major attempt to create a federal regulatory framework for digital assets. The 50-49 procedural tally included four Republican senators joining all Democrats in opposition, and senators cited conflicts tied to President Donald Trump’s crypto interests and contested stablecoin provisions as major sticking points.

By AI NewsroomPublished about 11 hours agoUpdated about 11 hours ago0 views

US Senate crypto bill collapses in blow to industry

Why It Matters

The setback leaves policymakers without a comprehensive congressional framework for cryptocurrencies, shifting the burden onto regulators such as the SEC and CFTC and increasing legal and policy uncertainty for the industry. It also highlights congressional difficulty in producing timely rules for rapidly evolving technologies while elections loom.

Key Facts

Bill: Digital Asset Market Clarity Act
Senate procedural vote: 50-49 in favor; failed to reach 60 votes needed to advance
Republican senators who voted against: Jerry Moran, Rand Paul, Josh Hawley, Thom Tillis
Top Democratic critic: Senator Elizabeth Warren (top Democrat on Senate Banking Committee)
Industry spending: Deep-pocketed crypto industry spent hundreds of millions of dollars campaigning for the bill (per source)

The Senate on Tuesday was unable to clear a procedural hurdle for the Digital Asset Market Clarity Act, denying proponents the 60 votes required to move the bill to debate and putting on hold the most significant congressional bid to date to codify federal rules for cryptocurrencies. The measure drew a 50-49 tally, as four Republicans joined all Democrats in opposing it, leaving its backers short of the supermajority needed.

Lawmakers and stakeholders pointed to several contentious provisions that prevented a deal. Safeguards tied to President Donald Trump’s extensive crypto interests were cited as a major obstacle, and community banks objected to language that would permit rewards on stablecoin holdings — arguing such rules could shift deposits away from traditional lenders and reduce credit available to small businesses and farmers. Senator Thom Tillis shifted his vote in a procedural move that preserves the option to bring the measure back for reconsideration.

The effort had strong industry support and heavy spending: the crypto sector spent hundreds of millions backing the legislation, and President Trump publicly pushed for passage, promoting his ties to crypto and portraying himself as aligned with the industry. The source notes Trump has earned more than $1.4 billion from his family’s crypto ventures and has described himself as a “crypto president.” With Congress about to adjourn ahead of November’s midterm elections, the bill’s defeat leaves the task of shaping near-term policy largely to regulators such as the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Market reaction was swift: bitcoin dropped more than 5 percent as the outcome appeared to be heading for defeat, its largest one-day percentage decline since June, while shares of Coinbase and Circle fell by as much as 10 percent. Industry experts quoted in the source warned that without a legislative framework, agency actions will be vulnerable to changing politics and legal challenges, and thus create continued uncertainty for crypto firms, investors and regulators. The episode also underscored a broader pattern of lawmakers struggling to keep pace with disruptive technologies, a challenge seen in concurrent debates over artificial intelligence.