A US Senate crypto bill backed by President Donald Trump has failed to secure enough support to proceed, dealing a major setback to efforts to create the country’s first comprehensive federal framework for digital-asset markets.
The Digital Asset Market Clarity Act fell short of the 60 votes required to advance to debate on Tuesday. The vote was 50-49, with four Republicans – Jerry Moran, Rand Paul, Josh Hawley and Thom Tillis – joining Democrats in opposing it.
The result is expected to put the legislation on ice as Congress prepares to leave Washington this month ahead of the November midterm elections. Republicans are seeking to retain control of both the House of Representatives and the Senate.
Senator Elizabeth Warren of Massachusetts, the leading Democrat on the Senate Banking Committee, said the bill posed “massive risks to families, our national security, and our economy”.
“And if that’s not bad enough, while Americans across the country suffer from an affordability crisis, this bill will turbocharge President Donald Trump’s ability to rake in billions and billions of dollars from crypto,” she said.
The dispute cut across party lines. Community banks opposed provisions that would have allowed rewards on stablecoin holdings, arguing that the policy could draw deposits away from traditional lenders and reduce the funding available to farmers and small businesses.
Several Republican senators also raised concerns about the stablecoin provisions, making it harder for party leaders to assemble the support needed to move the measure forward.
Trump’s crypto interests under scrutiny
Safeguards relating to Trump’s extensive crypto interests were among the main obstacles to reaching an agreement. The president, whose family’s crypto ventures have earned more than $1.4 billion, had urged Congress to approve the legislation.
Trump sought financial backing from the crypto industry during the 2024 campaign and described himself as a “crypto president”. The industry spent hundreds of millions of dollars campaigning for the bill.
Tillis changed his vote from yes to no as part of a procedural move, preserving the possibility of bringing the measure back for reconsideration in the future.
The failure leaves the Securities and Exchange Commission and the Commodity Futures Trading Commission to fill the policy gap. Industry experts have said that only Congress can establish a lasting regulatory framework, while rules made without legislation could remain exposed to political changes and legal challenges.
The collapse of the bill also highlighted Congress’s difficulty in keeping pace with disruptive technologies, as lawmakers face a similarly contested debate over artificial intelligence.
Bitcoin fell by more than 5 per cent as the vote appeared likely to fail, its sharpest one-day percentage decline since June. Shares in crypto exchange Coinbase and stablecoin issuer Circle fell by as much as 10 per cent.
