CLARITY Act Vote Fails, Delaying US Crypto Rules
The CLARITY Act stalled in the US Senate after a cloture motion on H.R. 3633 failed 49-50, below the 60 votes required to begin debate. Four Republicans—Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis—joined Democrats and independents in opposing the motion. Tillis said his vote preserved the option to seek reconsideration.
The bill had passed the House 294-134 in July 2025 after more than a year of bipartisan negotiations. Senate talks later broke down over ethics safeguards involving President Donald Trump, his family and administration officials with crypto interests. Lawmakers also remained divided on stablecoin yield, DeFi compliance and state enforcement powers. Eighteen state attorneys general urged senators to reject the bill in its current form.
The CLARITY Act’s failure increases uncertainty around US crypto regulation. Bitcoin was previously reported near $81,790, up 5.94% over 24 hours, but later fell 4.1% to $75,901 after the Senate vote. Polymarket odds of the bill becoming law in 2026 dropped to 5%.
The bill could still return for reconsideration, but its short-term path has weakened. Traders are likely to focus more on agency-led crypto rulemaking. SEC Chair Paul Atkins said the SEC will continue developing rules with or without legislation, while the CFTC is advancing separate crypto market proposals. Ripple CEO Brad Garlinghouse also expects the SEC and CFTC to act as Congress remains stalled. The regulatory delay may pressure Bitcoin in the short term, while clearer agency guidance could support market confidence over the longer term.
Bearish
The immediate price impact is bearish for Bitcoin. The Senate vote removed a major near-term catalyst for clearer US crypto market structure rules, and the reported 4.1% post-vote decline to $75,901 shows a negative market reaction. The drop in Polymarket odds to 5% also signals that traders now assign a low probability to rapid legislative progress.
Short-term trading may remain volatile as investors reassess regulatory risk, with resistance likely near pre-vote price levels and downside sensitivity to further political setbacks. However, the impact is not necessarily permanently bearish. The bill can still be reconsidered, and SEC and CFTC rulemaking may provide targeted guidance sooner than Congress can pass comprehensive legislation. If agency action improves institutional confidence or enables more on-chain financial products, it could support Bitcoin and the wider market over the longer term. For now, the combination of legislative delay and weaker sentiment supports a bearish classification for Bitcoin.