Senate Faces 60-Vote Test on Crypto Oversight Bill

The U.S. Senate rejected the CLARITY Act in a 49-50 procedural vote, leaving it short of the 60 votes needed to overcome a filibuster and stalling efforts to create a comprehensive federal framework for digital assets. The bill would divide oversight between the SEC and CFTC and establish consumer-protection and market rules, but negotiations broke down over ethics, anti-money-laundering and national-security provisions, with Democrats citing President Donald Trump’s reported $1.4 billion in crypto income and Republicans accusing them of moving the goalposts. State attorneys general and some lawmakers also warned that the bill could weaken state enforcement authority or harm community banks. The SEC and CFTC say they will pursue crypto rules under existing authority, while the House Ways and Means Committee advanced the Digital Asset Tax Certainty Act in a 38-5 vote to clarify tax treatment for stablecoins, staking, mining, lending and small transaction fees. In the U.K., banks may continue blocking payments to crypto exchanges, which face an FCA licensing deadline in October 2027. With limited Senate business remaining before 2027, the CLARITY Act is unlikely to advance this year unless revived, prolonging regulatory uncertainty and tempering expectations for a major crypto-market boost; analysts offer a mixed outlook, with Bitwise’s Matt Hougan anticipating a difficult 2026 before a possible 2027 recovery.