The CLARITY Act officially failed to pass a procedural vote in the US Senate on Tuesday, September 16, 2026. The legislation garnered only 49 votes in favor against 50 opposed, falling short of the required 60-vote threshold. Cynthia Lummis, the bill’s lead sponsor, immediately responded to the outcome with a closing statement: the process is over.
A last-minute breakdown in negotiations caused the failure. Staff for Senator Tim Scott ended discussions regarding ethics provisions in Thom Tillis’ office, while Republican Senator Susan Collins crossed party lines to vote against the measure. On Polymarket, the odds of the legislation passing in 2026 plunged to 5%.
Bitcoin responded to the vote with a 0.9% daily drop and a 4% weekly decline, hovering at $76,140 on Wednesday morning. Ethereum was also dragged down, recording around $250 million in liquidations as the market pulled back following news of the Senate rejection.
Regulators Prepare New Rules
Research firm Bernstein, in a note to Cointelegraph on Wednesday, warned that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will respond with aggressive rulemaking. Bernstein noted the move is specifically aimed at making up for time lost during CLARITY Act negotiations.
The anticipated regulatory slate includes a token taxonomy for capital raises, developer protections for DeFi and self-custody protocols, and innovation exemptions for equity tokenization. The CFTC is also expected to fast-track approvals for real-world asset (RWA) perpetual futures and amend federal sports contract rules to recognize them as swaps.
CFTC Director Selig has reportedly instructed staff to draft rules using existing statutory authority. The SEC had earlier proposed a crypto investment framework on August 19, 2026, allowing crypto firms to issue up to $5 million in tokens over four years or $75 million within 12 months under a safe harbor from securities classification.
Political Calculations and Interest Rates
Advocacy organization Stand With Crypto confirmed that each lawmaker’s vote on the CLARITY Act will be added to its public scorecard ahead of the November elections. The advocacy group claims to represent a voting bloc of 67 million crypto owners in the US.
Algoz analysts project that upcoming market momentum will hinge on the central bank, pointing to CME FedWatch data showing a 93% probability of a 25-basis-point rate cut by the Fed. A dovish stance from the Fed is expected to lift crypto markets in the fourth quarter, while a hawkish tone could push Bitcoin to retest the $63,000 price level.
Reported by Cointelegraph.
Previously: US Crypto Bill Fails in Senate 49-50 - Industry Fate Now in Hands of SEC
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
