The Digital Asset Market Clarity Act failed to clear a critical procedural hurdle in the U.S. Senate on Tuesday, falling 11 votes short of the 60 needed for cloture. The tally stood at 49 yea and 50 nay, despite last-minute concessions from Republican negotiators and a personal push from President Donald Trump. The setback sent shockwaves through digital-asset markets, erasing roughly 3 percent of global crypto market capitalization within hours.
Vote Count and Political Dynamics
Cloture is the Senate mechanism used to end debate and force a final vote on legislation. Tuesday's roll call showed a near-even split, with several Democrats breaking ranks even after Republicans unveiled a revised draft over the weekend. That updated version included stricter crypto ethics rules and a circuit-breaker provision designed to cap stablecoin yields and prevent deposit flight from traditional banks. Banking trade groups, however, warned that the circuit breaker offered no real safeguard. Both parties acknowledged the bill is not dead, but it must now wait for a new legislative window or fresh negotiations.
Immediate Market Reaction
Bitcoin (BTC) slid 4 percent to $76,000, while Ethereum (ETH) dropped 5 percent to $2,400. Major altcoins suffered steeper losses: Ripple (XRP) tumbled 12 percent, Solana (SOL) 5 percent, Zcash (ZEC) 6 percent, and Hyperliquid (HYPE) 5 percent. According to Coinglass data, the plunge triggered approximately $770 million in liquidations over 24 hours. Bitcoin and Ethereum long positions accounted for $191.4 million and $203.5 million of that total, respectively.
Banking Concerns and SEC Posture
Banking industry representatives had argued that the stablecoin yield circuit breaker added to the bill does not meaningfully protect bank deposits from migrating to higher-yielding crypto instruments. Meanwhile, the Securities and Exchange Commission (SEC) has signaled it will issue its own rules addressing the same gaps if Congress fails to act, keeping regulatory uncertainty alive.
What Comes Next
With no clear path to 60 votes in the current session, the legislation is effectively shelved. Market participants are now watching for the SEC's forthcoming rulemaking and any attempt to revive the bill in the next congressional calendar. Until then, heightened volatility appears likely to persist.
