CLARITY Act Faces Major Setback As Senate Fails To Invoke Cloture On Crypto Bill
Highlights
- The Senate failed to get the required 60 votes to invoke cloture on the CLARITY Act.
- Key Democrats who had been negotiating on the bill voted NO on the motion to proceed.
- The odds of the CLARITY Act passing this year has crashed to 7%.
The CLARITY Act has stalled in the Senate after a motion to invoke cloture on the crypto bill failed to reach the 60-vote threshold. This represents a major setback for the crypto bill, with the odds of passage sharply declining on the back of this development.
Senate Fails To Invoke Cloture On CLARITY Act
The U.S. Senate failed to invoke cloture on the motion to proceed with consideration of the crypto bill, a major setback to passing it this year. The failure to invoke cloture followed Republicans’ rejection of Democrats’ counterproposal on the bill.
Senators voted 50 to 49 against invoking cloture on the CLARITY Act motion. Notably, key Democrats such as Senator Angela Alsobrooks, Ruben Gallego, and Kirsten Gillibrand, who had led negotiations, voted no on the motion.
Meanwhile, Republicans such as Senators Susan Collins, Josh Hawley, and Jerry Moran also voted no. Senator Thom Tillis, who was actively involved in negotiations on the ethics and stablecoin yield provisions, voted no and moved to recommit.
It remains unclear what happens next, as Senate Majority Leader John Thune can file another cloture motion. However, without a bipartisan deal, the CLARITY Act is unlikely to clear this key procedural hurdle toward becoming law.
Odds Of Passage Fall Sharply
The odds of the CLARITY Act becoming law this year have fallen sharply after the Senate failed to invoke cloture on the bill. Data from the top crypto prediction platform Polymarket shows only a 7% chance that President Trump will sign the crypto bill into law this year, down from as high as 31% yesterday.
It is worth noting that the ethics provision has remained the major obstacle to the crypto bill’s progress. Despite President Trump’s latest concessions in the final text of the crypto bill, Democrats argued that the provision was still insufficient to crack down on the president’s crypto ventures.
In their counterproposal, Democrats proposed that the ethics provision should cover the dependent children of federal officials. Meanwhile, in a statement after the failed cloture vote, Senator Gallego said that all the president wants from the Senate is “time to crime” and that he won’t support any legislation that enables it.
He also claimed Republican leadership ended talks and forced a vote just as both sides were making progress on ethics concerns. “They were never serious about bipartisan negotiations,” he asserted.
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