Clarify Act Fails in Senate Vote...Circle Stock Drops 11%

The Clarify Act failed to pass in a Senate procedural vote on Tuesday, falling short of the required 60 votes needed to advance the cryptocurrency market structure legislation to the full chamber.

Circle Internet Group (CRCL) stock fell 11.61% to $86.11 as of 2:42 p.m. EDT, marking a significant decline for the stablecoin issuer that had been seen as the most representative stock market indicator of the bill's passage potential.

The vote was a cloture motion intended to end debate and move forward with the legislation. Sixty votes were needed for approval, but 41 senators voted against it, immediately ending the procedure.

Officially titled the Digital Asset Market Clarity Act, the bill would have split federal regulatory authority over digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The House passed the legislation in 2025. Senators Cynthia Lummis, John Boozman, and Tim Scott led the Senate discussion.

BeInCrypto reported earlier that the revised bill text had faced opposition from banking trade groups, 18 state attorneys general, and Senator Elizabeth Warren. Republicans released the final version over the weekend as their last proposal to Democrats.

If the bill fails, exchanges and token issuers would need to comply with both agencies' standards, creating a dual compliance burden that this legislation aimed to resolve.

Circle issues USDC, the second-largest dollar-pegged stablecoin. Shareholders had anticipated broader partnerships with banking and payment firms once federal clarity was achieved.

Other crypto assets also rose ahead of the vote, with XRP and Stellar showing gains on Monday as traders positioned for potential bill passage.

The bill's failure does not mean it is completely over. Senate leadership could schedule another cloture vote at any time, though there are no immediate deadlines to force a resolution this year.