[UPDATE] Senate blocks the Clarity Act 49-50 on motion to proceed

All 47 Democrats held out over Donald Trump's $1.4 billion in crypto income, leaving the House-passed bill to split oversight of the $2.3 trillion market between the CFTC and SEC 11 votes short of debate.

Red

Elizabeth Warren's objection deserves its strongest reading: a president whose disclosures show $1.4 billion in digital-asset income would be governed by a statute his industry allies shaped, and “add divestment later” is how conflicts get ratified. But weigh the actual alternative. The bill already bars federal officials from issuing tokens — the specific mechanism of Trump's enrichment — and divestment could still have been attached before passage; Tuesday's vote was a motion to begin debate, the one step where that leverage could be kept rather than spent. What Democrats chose instead leaves a $2.3 trillion market policed case-by-case by agencies Donald Trump controls. They did not constrain him. They preserved his discretion and surrendered the statute that would have bound him.

What the bill does. The Clarity Act — passed by the House in July 2025 — would write the first federal market structure for crypto into law. Tokens "intrinsically linked" to a blockchain become digital commodities under exclusive CFTC jurisdiction; securities stay with the SEC. Exchanges, brokers and dealers would register with the CFTC under a 180-day expedited track, issuers could raise up to $75 million a year on "mature" blockchains — no controlling group, insiders under 20% — without full registration, and the Federal Reserve would be barred from issuing a retail digital dollar. It would replace a regime built on the Supreme Court's 1946 Howey test and case-by-case enforcement. The vote. Majority Leader John Thune (Sen-R South Dakota) brought the motion to proceed Tuesday after Donald Trump agreed to an ethics title barring officials from issuing digital assets. All 47 Democrats plus three Republicans voted no, leaving it 11 short of the 60 needed. The ethics dispute. Elizabeth Warren (Sen-D Massachusetts) led the holdout over the compromise's omission of mandatory divestment — Trump's disclosures show digital assets generated more than $1.4 billion of his $2.2 billion in 2025 income. Sponsors countered that the draft had already adopted more than 100 Democratic revisions. Where it stands. Lead sponsor Cynthia Lummis (Sen-R Wyoming) declared the bill finished and said it would not return to the floor. (TS: per Senate records, the GENIUS bill failed this same motion 48-49 last May, then passed 66-32 eleven days later.) Congress breaks for an October recess ahead of the midterms, leaving crypto under agency enforcement unless Senate leaders take up the reconsideration motion before January 2027.

PREVIOUSLY

On Monday (Sept. 14), Donald Trump agreed to an ethics amendment barring senior federal officials from issuing digital assets and authorizing state attorneys general to enforce the rules alongside the Justice Department.

Republicans who voted no:

Josh Hawley (Sen-R Missouri) — voted no over objections that stablecoin yields would drain deposits from community banks.
Thom Tillis (Sen-R North Carolina) — voted yes, then switched to no to enter a motion to reconsider that keeps the bill alive.
Susan Collins (Sen-R Maine) — voted no, citing unresolved concerns with the final regulatory text.