The Clarity Act, a comprehensive cryptocurrency regulatory package backed by President Donald Trump, failed to clear a procedural hurdle in the United States Senate on Tuesday, effectively ending its immediate legislative prospects. Senator Cynthia Lummis, R-Wyo., who served as the bill's primary architect, declared the effort over, stating, "I think we're done. It's over." Lummis noted that the team had worked on the legislation for more than a year and addressed over 120 requests from colleagues, adding that she did not expect the bill to return to the floor.
The failure resulted from a coalition of opposition among Democrats and a subset of Republicans who remained unconvinced by the final text. A late-night amendment was introduced in an attempt to secure enough support to move the package forward, but it proved insufficient. With the Senate calendar tightening ahead of midterm elections and other major bills pending, the bill's backers assessed that it would likely be shelved.
Democratic critics focused on specific deficiencies in the draft. Senator Cory Booker, D-N.J., told Fox News Digital before the vote that he had not seen the final version but described what he had reviewed as bad. Several Democrats objected to the ethics provisions intended to restrict the Trump family's expanding cryptocurrency business. According to financial disclosure forms reviewed by Fox News Digital, President Trump's income surged by approximately 250% between 2024 and 2025, rising from just over $620 million to about $2.2 billion. Much of this increase is attributed to crypto holdings and ventures managed by his sons, Don Jr. and Eric.
Other concerns centered on the bill's approach to financial crime. Senator Andy Kim, D-N.J., argued that the language addressing foreign money laundering lacked sufficient force. Kim stated that he had not seen adequate engagement from Republicans on countering terrorist and cartel financing, a gap that prevented him from voting yes. He added that he had only supported the earlier GENIUS Act at the final moment.
Some Republican lawmakers argued for moving forward with amendments rather than blocking the bill entirely. Senator John Cornyn, R-Texas, remained undecided before the vote, expressing concern that integrating crypto could impact deposit yields at community banks or allow currency to be diverted for criminal purposes. Cornyn suggested a legislative process where lawmakers vote to proceed and then amend the text before a final decision.
The Clarity Act's failure allows the Senate to pivot to other priorities. Senate Majority Leader John Thune, R-S.D., indicated an intent to move quickly to Senator Ted Cruz's, R-Texas, college sports bill, which seeks to add protections for student-athletes and address financial changes in collegiate athletics. Thune stated that he hoped to secure the 60 votes needed for passage but was uncertain of the outcome.