The Senate failed to advance the Digital Asset Market Clarity Act on Tuesday, underscoring deep divisions between Republicans and Democrats over ethics provisions and market‑structure authority just days after negotiators released a final compromise draft.

At the Solana Policy Institute Summit in Washington, D.C. on Monday afternoon, anticipation about Clarity was high as lawmakers and regulators joined industry leaders to discuss the state of digital assets. Sen. Cynthia Lummis, R‑Wyo., who retires in a few months, expressed concern that Democrats have not been negotiating in good faith.

“It’s time to vote now. This is as good as it’s going to get…This is the right product at the right time.”

Republicans And Democrats Split On Strategy

By that evening, reports circulated that Senate Democrats would counter with their own version of the legislation. With the procedural vote less than 24 hours away, the path to 60 votes looked unlikely. There were rumblings that Sen. Kirsten Gillibrand, D‑N.Y., was urging fellow Democrats to support the bill.

On Tuesday morning, Republicans largely dismissed the Democratic counteroffer.

The cloture outcome unfolded mostly as expected. All Democrats, including Gillibrand, voted against the measure, three GOP members also voted no. Shortly before the vote closed, Sen. Thom Tillis,........

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