The Senate voted 49-50 against advancing the Clarity Act, which would have designated the CFTC as the primary crypto regulator and established a comprehensive framework for digital asset classification. All Democrats voted against, joined by four Republican defections — though one switched at the last moment, a procedural maneuver that allows the bill to be reintroduced later. The crypto industry had spent hundreds of millions of dollars lobbying for passage, and several recent rally events had been fueled by anticipation of approval. Bitcoin fell to roughly $76,000, while Coinbase shares lost up to 10% in after-hours trading. The bill is not dead — the procedural trick keeps it alive — but passage before the November midterm elections is now extremely unlikely. A revised version had been released Sunday to shore up support, strengthening state attorneys general powers and restricting stablecoin premiums and interest payments, but it still could not attract the 60 votes needed to overcome the filibuster.

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