Crypto Legislation Knocked Down in U.S. Senate
The legislation meant to give investors and businesses greater access to digital assets did not make it past a procedural vote.
A cryptocurrency regulation bill that could have served as a vehicle for additional retirement industry-related measures failed to pass a procedural vote in the Senate and looks unlikely to advance in the Senate. Only 50 U.S. senators voted to end debate on the bill and advance it for consideration.
The Digital Asset Market Clarity Act of 2025 on Tuesday afternoon, falling short of the 60 votes needed to invoke cloture and bring the bill to a floor vote.
Forty-nine senators voted against cloture, including all Democrats and four Republicans: Senators Susan Collins, R‑Maine; Josh Hawley, R‑Missouri; Jerry Moran, R‑Kansas; and Thom Tillis, R‑North Carolina. Tillis had initially voted yes, then changed his vote to no.
The Clarity Act is designed to streamline the oversight of digital assets, classifying them as “digital commodities” regulated by the Commodity Futures Trading Commission and “digital securities” regulated by the Securities and Exchange Commission. It also includes investor protections designed to curb insider trading and market manipulation, and provide new anti-money-laundering and sanctions-compliance requirements.
Had the cloture vote succeeded, the Clarity Act would have potentially been amended to add other retirement industry-backed provisions, including the Retirement Fairness for Charities and Educational Institutions Act, which would allow 403(b) plan participants to access collective investment trusts and other investment options already available in many 401(k), 457(b) and federal Thrift Savings Plan accounts.
After passing the House in July 2025, the Clarity Act cleared the Senate Banking Committee in May but subsequently faced repeated delays on the Senate floor. The Senate Agriculture Committee voted along party lines in January to advance its version of the bill.
In the hours leading up to Tuesday’s cloture vote, Democratic senators opposed the legislation submitted a counterproposal after receiving what the Republican sponsors characterized as a final negotiating offer.
Senator Cynthia Lummis, R-Wyoming, one of Congress’ most outspoken supporters of cryptocurrency legislation, said Tuesday afternoon that she had spent the past year working to advance the Clarity Act.
“Wyoming did not send me to Washington to watch America fall behind,” Lummis said. “My state sent me here to make sure we lead.”
Senator Elizabeth Warren, D-Massachusetts, urged lawmakers to reject the bill, warning it could create a “crypto-fueled economic crash” and weaken longstanding investor protections. Warren argued the measure could allow companies to move assets onto blockchain-based platforms to avoid securities regulations. She also said that lawmakers should negotiate a bipartisan alternative and urged colleagues to vote against the bill.
With the November midterm elections approaching, the window to move the legislation forward is narrowing.
Other supporters of the Clarity Act, including SEC Chair Paul Atkins, argued the legislation would reduce uncertainty for investors and businesses seeking to determine whether digital assets fall under regulations for securities or commodities.