The United States Senate rejected a decisive procedural vote on the Clarity Act, stalling the proposal that sought to establish the first federal regulatory framework for the country’s cryptocurrency market.
The motion received 49 votes in favor and 50 against, failing to reach the minimum 60 votes needed to move the text forward for debate on the floor.
The advance was blocked following disagreements over the inclusion of conflict-of-interest clauses, driven by concerns from the opposition about crypto ventures linked to President Donald Trump’s family.
Community banks and traditional financial institutions also lobbied lawmakers against the bill, fearing deposits would flee to yield-paying stablecoins.
The outcome triggered strong volatility and price drops for Bitcoin and Ethereum.
With the bill stalled in Congress, oversight of the sector in the US remains dependent on individual and punitive actions by agencies such as the SEC and the CFTC.