BREAKING: Senate Democrats Reject GOP's "Final" CLARITY Act Draft — Passage Odds Crash to 16%
The crypto market-structure bill hit fresh turbulence today as Senate Republicans' revised "final" CLARITY Act draft — which incorporated 126 Democratic-requested changes — was rejected by key Democratic negotiators just hours before Tuesday's critical 60-vote cloture test.
What happened:
Sen. Mark Warner and other Democrats on the negotiating team said the ethics provisions still don't go far enough, even after new language was added banning federal officials from issuing digital assets. Democrats have now sent a counterproposal back to Republicans, but the GOP has called their draft final, leaving little room for further concessions.
Why it matters:
Polymarket odds for CLARITY Act passage in 2026 dropped from a brief high of 35% down to just 16%
The bill needs 60 votes Tuesday just to open debate — not even final passage
18 state attorneys general, banking groups, and tribal advocacy organizations have also raised objections
SEC Chair Paul Atkins and Treasury Secretary Scott Bessent are publicly urging senators to advance the bill
Market impact:
CLARITY Act is the bill meant to finally divide crypto oversight between the SEC and CFTC. A stalled or failed vote extends regulatory uncertainty for the industry heading into the 2026 midterms — a bearish signal for tokens whose valuations lean on the promise of clear U.S. rules.
⚠️ Educational purpose only — not financial advice.
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