Crypto Clarity Act Fails: List of Senate Republicans Voting With Democrats - Newsweek

Senate Democrats on Tuesday blocked the Crypto Clarity Act, preventing the legislation from advancing after a 49-50 procedural vote fell short of the 60 votes needed to move forward.

Three Republicans broke with their party to oppose the measure: Senator Susan Collins of Maine, Senator Josh Hawley of Missouri and Senator Jerry Moran of Kansas. Delaware Democrat Chris Coons did not vote. Senator Thom Tillis (North Carolina) also voted "no," but did so for procedural reasons so he could enter a motion to reconsider and preserve the option of a future vote.

In a post on X following the vote, Tillis defended his decision, saying, "This is not the end for the Clarity Act. We've made substantial bipartisan progress in large part because of the White House. This procedural motion allows us to continue working towards a positive outcome."

“Today’s outcome is a missed opportunity for American businesses, consumers, and U.S. competitiveness, but the need for clear, predictable rules for digital assets remains as urgent as it ever has," the Digital Currency Group told Newsweek in an emailed statement Tuesday. "Thank you to the members of Congress and their staff who worked tirelessly to get us this far. We will continue partnering with lawmakers on both sides of the aisle to move a durable framework forward and ensure the U.S. remains the innovation capital of the digital assets industry.”

Collins defended her vote as well, telling Newsweek in an emailed statement Tuesday night, "The Clarity Act remains a moving target. It’s now grown to more than 600 pages with provisions that need further study, such as whether it would cause community banks and credit unions to lose deposits that are the foundation for loans for mortgages, small businesses, and other family needs.”

“The farmers in my state are just absolutely scared to death that this will mean, as the text is currently written, that they won't be able to get loans,” Hawley said in a statement emailed to Newsweek.

The legislation would have established a national regulatory framework for digital assets, an effort long sought by the cryptocurrency industry as companies push for clearer federal rules governing the $2.3 trillion sector. Supporters argued the bill would provide legal certainty for crypto firms while adding consumer protections and regulatory guardrails designed to prevent fraud and market instability.

Newsweek reached out to Collins, Hawley, Moran and Tillis for comment on Tuesday.

Democrats, however, united against the measure after negotiations over ethics provisions failed to produce an agreement. Many lawmakers argued the bill did not go far enough in addressing concerns about President Donald Trump's extensive crypto investments and his family's involvement in cryptocurrency businesses. Several Democrats who generally support crypto regulation said they remained open to a deal but wanted stronger restrictions on elected officials and their families profiting from digital assets while in office.

The vote was particularly notable because Republicans control 53 Senate seats, meaning the legislation needed bipartisan support to overcome the chamber's 60-vote threshold. Before the vote was finalized, Senator Thom Tillis of North Carolina switched his vote to "no" and entered a motion to reconsider, a procedural move that preserves the possibility of bringing the measure back for another vote.

The setback is a significant blow to the cryptocurrency industry's lobbying efforts ahead of the midterm elections. Crypto groups have spent heavily in recent election cycles and viewed the Clarity Act as a cornerstone of their push for comprehensive federal regulation. With Congress scheduled to spend much of October out of session and the political landscape potentially changing after November's elections, supporters now face an uncertain path forward.

The Clarity Act was designed to create the first broad federal framework governing cryptocurrencies and other digital assets in the United States. Supporters said the legislation would establish clearer rules for when digital tokens should be regulated as securities by the Securities and Exchange Commission (SEC) and when they should fall under the Commodity Futures Trading Commission (CFTC).

Backers of the bill argued that regulatory uncertainty has driven crypto firms overseas and hampered innovation in the U.S. They said the legislation would provide businesses, investors and regulators with a clearer road map for trading, custody and oversight of digital assets.

Senate Democrats said they support cryptocurrency regulation in principle but argued the Clarity Act lacked sufficient ethics safeguards.

Massachusetts Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, was among the bill's most vocal critics.

Democrats had pushed for stronger provisions aimed at preventing elected officials and their families from profiting from cryptocurrency businesses while in office.

The vote came just days after Republican lawmakers revised the bill and said the White House had agreed to new ethics-related provisions in an attempt to win additional Democratic support.

However, those changes ultimately failed to attract enough votes to clear the Senate's 60-vote threshold.

The failure effectively freezes prospects for the legislation in the near term, particularly as Congress prepares to leave Washington before November's midterm elections.

Tillis later switched his vote from "yes" to "no" in a procedural move that preserves his ability to bring the measure back up for reconsideration.

The stalling of the Clarity Act leaves crypto companies facing continued regulatory uncertainty despite years of industry lobbying and bipartisan negotiations.

While supporters have indicated they may continue pursuing legislation, the failed vote underscores the political challenges of passing crypto rules amid growing scrutiny of the relationship between elected officials and the rapidly expanding digital asset sector.

The Associated Press contributed to this story.

Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas