Democrats voted against the Clarity Act in the Senate, leaving the bill short of the 60 votes needed to advance. The move followed demands for more concessions, while Republicans said their latest text was the final offer.
Crypto markets reacted immediately. Major coins, altcoins, and meme tokens all sold off after the vote, showing how much traders had already tied near-term optimism to a clear US market structure framework.
Sen. Kirsten Gillibrand says Democrats remain committed to passing the bill, so this may be a delay rather than a full retreat. Still, industry analysts see the legislation as highly unlikely to pass during the current Congress.
That leaves the SEC and CFTC rulemaking efforts carrying more weight. For crypto businesses and traders, regulatory clarity may now arrive through agency action before Congress can agree on a law.