The Senate failed to invoke cloture on the Digital Asset Market Clarity Act Tuesday afternoon, falling short of the 60 votes needed to advance the bill to debate. Senators voted 49 in favor and 50 against, dooming the bill that needed at least seven Democrats to cross over.

The crypto market did not like the outcome, as you might expect, with Bitcoin sliding as the “no” votes came in and the bill’s outcome looked certain. Bitcoin is down 1.3% in the last hour during the vote, and almost 4% on the day, as it trades around $76,000.

Tuesday’s vote was a cloture motion on H.R. 3633, not a final vote on the bill itself. Cloture only decides whether the Senate can move to formal debate. A failed cloture vote effectively ends the bill’s chances for 2026, with only about 22 working days left on the Senate calendar before midterm campaigning takes over.

Sen. Cynthia Lummis (R-Wyo.), the bill’s lead GOP negotiator, wrote ahead of the vote that a failure would possibly be final, suggesting there’s no more room to negotiate over the bill’s language with Democrats. “It’s now or never for the Clarity Act.,” she said, arguing Republicans had already delivered more than 120 of the changes Democrats had asked for over the past year.

Senate Banking ranking member Elizabeth Warren delivered a floor speech opposing the bill, warning it would spark a “crypto-fueled economic crash” if approved.

The rest of her party, evidently, backed her up.

Why it stalled

Three fights dragged the bill out for months. Banks wanted language banning crypto firms from paying yield on stablecoins, arguing it would pull deposits out of traditional accounts. Eight banking trade groups pushed for even tighter restrictions just days before the vote.

Democrats wanted stronger conflict-of-interest rules given Trump’s personal crypto holdings, and software developers wanted explicit protection from criminal liability for building non-custodial tools.

Senate Republicans released a revised, 630-page draft late Sunday night trying to close all three gaps, adding a state-attorney-general enforcement role on ethics and softening the developer-liability language. It wasn’t enough to move the needed Democrats.

Markets react—but don’t overreact

Bitcoin traded as high as $77,200 shortly before the vote began, then chopped in a narrowing range through the early proceedings. It broke down around 2:30 p.m. ET, sliding from roughly $76,900 to a session low near $75,600 in about 10 minutes as soon as the “no” tally climbed past 40.

That put Bitcoin down almost 4% on the day and well off its September peak near $82,000.

The decline was orderly rather than a rush for the exits. Traders had already priced in most of the bad news: Polymarket odds on the Clarity Act becoming law in 2026 had fallen to 17% by Tuesday morning, down from about 34% on Monday, after Republicans rejected a Democratic counteroffer just hours before the vote.

The overall crypto market lost nearly 3% after quickly recovering from a post “no” panic that took the losses to more than 4.2%.

The industry’s response leaned defiant rather than despondent. The Digital Chamber, a crypto trade group, called Tuesday’s result a “setback” rather than a defeat in a post on X, and said it remains committed to seeing comprehensive digital asset regulation through to passage.

With Congress facing roughly three weeks of working days before the fall session turns to midterm campaigning, the SEC and CFTC’s own rulemaking process, the fallback Treasury Secretary Scott Bessent has pointed to if legislation stalls, is now the nearest thing to a regulatory timeline U.S. crypto markets have left for 2026.