Lawmakers voted 49 to 50, short of the 60 votes needed. Key Democratic negotiators voted against the bill, largely because of ethical concerns. This came despite 126 amendments introduced at Democrats’ request. The updated version expanded the powers of state attorneys general and required officials to place crypto assets into trusts.
However, Democrats said this provision would be unenforceable because the final decision would still rest with the Justice Department. In addition, they demanded that officials be required to sell crypto assets rather than place them in trusts. Republicans rejected these proposals, saying their version was final given the 126 concessions made to Democrats.
After the failed vote, according to Polymarket, the probability of the Clarity Act being passed in 2026 fell from 35% to 5%. Without the bill’s passage, the main regulation of the crypto industry will remain under CFTC and SEC rules.