Update for XRP Army: Senate Kills CLARITY Act. Here’s How They Vote

The U.S. Senate has failed to advance the CLARITY Act. Former Fox Business journalist Eleanor Terrett shared the news on X on Tuesday, citing a text from an industry leader that read, “It died.” The bill had 49 yes and 50 no votes, falling far short of the 60 needed for cloture.

Several Democrats who spent months negotiating the bill voted against it. That group included Senators Gillibrand, Warner, Booker, Warnock, Gallego, Alsobrooks, and Cortez Masto.

What the Bill Would Have Done

The CLARITY Act aimed to create a federal regulatory framework for digital assets. It would have split oversight between the SEC and the CFTC, giving each agency defined jurisdiction over different asset classes. The bill passed the House in July 2025, and passed the Senate Agriculture and Banking Committees in 2026. However, the Senate floor proved a far tougher arena.

Despite numerous concessions, including President Trump agreeing to ethics provisions laid out by Democrats, all Democratic Senators voted against the bill. Republicans made 126 substantive changes at Democratic request ahead of the vote. They released a 635-page substitute bill days before the vote, but Democrats sent a counter-offer on the morning of the vote, which Republicans rejected.

Republican Defections

Three Republicans voted against the bill outright. Collins had flagged concerns about the bill’s potential impact on community bank deposits throughout the final weeks of negotiations. Moran shared those concerns. Hawley opposed the bill, claiming it favored large fintech companies over community banks and smaller competitors. Tillis used a motion to recommit rather than a No.

The defections meant the bill could not reach even a simple majority, falling short at 49 yes votes. The failure ends any realistic chance of market structure legislation passing in 2026, and Senator Lummis has warned that the next available window could be 2030.

What Comes Next?

The SEC and CFTC will continue developing crypto rules through regulatory guidance, as both have committed to move forward with or without the CLARITY Act. However, SEC Chair Paul Atkins has already stated those rules will lack durability without a statutory foundation.

The next Congress, seated in January, will inherit the issue. If Democrats win the House majority in November, crypto market structure legislation faces a significantly harder path forward.