TLDRThe Senate rejected a cloture vote on the CLARITY Act, 49-50, falling short of the 60 votes needed to advance.Seven Democratic senators, led by Kirsten Gillibrand, said they remain committed to passing the bill despite the setback.The senators involved include Alsobrooks, Booker, Cortez Masto, Gallego, Warner, and Warnock.Analysts at StoneX say the bill is likely dead for this Congress due to limited legislative days left.Bernstein and JPMorgan analysts expect the SEC and CFTC to step in with rulemaking to fill the regulatory gap.A group of seven Democratic senators says the fight to pass federal crypto legislation is not over, even after the Senate blocked a key procedural vote this week.The CLARITY Act failed to clear a cloture vote on Tuesday. The final tally was 49 in favor and 50 against, missing the 60 votes required to move forward.Senators Kirsten Gillibrand of New York, Angela Alsobrooks of Maryland, Cory Booker of New Jersey, Catherine Cortez Masto of Nevada, Ruben Gallego of Arizona, Mark Warner of Virginia, and Raphael Warnock of Georgia issued a joint statement on Wednesday.“This week was a setback, but not the end of that important work,” the senators wrote. “We remain committed to working in a bipartisan fashion to get this legislation passed.”What the CLARITY Act Would DoThe bill aims to create a clear regulatory structure for digital asset markets in the United States. It would divide oversight duties between the Securities and Exchange Commission and the Commodity Futures Trading Commission.Supporters say the legislation would give crypto companies clear rules to follow. It would also outline consumer protections and ethics requirements for elected officials.The senators said Democrats have spent two years working on the bill. Their goal was to expand opportunity, protect consumers, and create regulatory certainty for the industry.All seven senators who signed the statement voted against the cloture motion this week. They argued the current version still needed changes before it could earn their full support.Republican Senator Cynthia Lummis of Wyoming said the final text already included more than 120 Democratic requests. Disagreements remained over banking rules, stablecoin rewards, and state enforcement powers.Treasury Secretary Scott Bessent and Ripple chief executive Brad Garlinghouse had both pushed publicly for the bill ahead of the vote. Ripple later said the failed vote does not change XRP’s legal status in the United States.Analysts Question the Bill’s Path ForwardFinancial analysts at StoneX said the bill is effectively dead for this session of Congress. They pointed to the limited number of working days left before lawmakers shift focus to campaign season.Analysts at Bernstein expect regulators to act instead of Congress. They said the SEC and CFTC may issue specific rules covering token classification, DeFi protections, and self-custody guidelines.JPMorgan analysts echoed that view in a recent report. They said agency rulemaking could offer some short-term guardrails for the industry, though it would carry less legal weight than a full law.Until new legislation passes, digital asset markets in the United States remain under the oversight of existing federal agencies. There is currently no single federal law that defines how tokens should be classified.The senators say talks with Republicans will continue despite the failed vote. No new timeline for another vote has been announced.The post Senate Rejects Cloture on Crypto Bill CLARITY Act appeared first on Blockonomi.