US Senate Rejects Major Cryptocurrency Bill in Major Setback for Digital-Asset Industry

The United States Senate has failed to advance comprehensive cryptocurrency legislation backed by President Donald Trump, delivering a major blow to digital-asset companies and Republicans who championed the bill for months. The Digital Asset Market Clarity Act fell short on Tuesday, failing to secure the 60 votes required to move to a Senate debate. Safeguards surrounding President Donald Trump’s extensive crypto interests proved to be one of the primary obstacles to reaching an agreement.

Four Republican senators—Jerry Moran, Rand Paul, Josh Hawley, and Thom Tillis—voted alongside all Democrats against the measure, resulting in a 50-49 tally in favour. The outcome effectively shelves the bill as Congress prepares to leave Washington this month ahead of the November midterm elections, where President Donald Trump’s fellow Republicans are fighting to maintain control of both the House of Representatives and the Senate.

Massachusetts Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, criticised the legislation, stating it posed severe risks to families, national security, and the economy. She added that the bill would further enhance President Donald Trump’s ability to generate billions of dollars from cryptocurrency while Americans struggle with an affordability crisis.

The defeat represents a significant setback for establishing the first comprehensive federal framework for digital-asset markets, highlighting Congress's ongoing difficulties in keeping pace with disruptive technologies. Meanwhile, Thom Tillis altered his vote from yes to no as a procedural step to retain the right to bring the measure back for future reconsideration.

The opposition was not entirely partisan. Community banks strongly opposed provisions that would allow rewards on stablecoin holdings, warning they could drain deposits from traditional lenders and diminish available funding for small businesses and farmers. In the wake of the vote, Bitcoin dropped more than 5 percent, while shares of Coinbase and Circle declined by as much as 10 percent.