One Senate vote short of a bare majority, the CLARITY Act collapsed and sent XRP tumbling nearly 8% while Bitcoin barely flinched, raising a question that will define every crypto trade this fall: which coins hold their ground on agency…
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On September 15, the Senate voted 49 to 50 against opening debate on the CLARITY Act, falling eleven votes short of the 60 needed for cloture. Every Democrat present voted against the bill, which included an ethics package covering the president’s spouse but excluding his children, whose venture, World Liberty Financial, trades in cryptocurrency.
After the vote, XRP (CRYPTO:XRP) dropped 7.98% to $1.29, while Bitcoin (CRYPTO:BTC) decreased by 1.42% to $75,924. The question now is which decline reflects the impact of the vote and which is due to broader market pressures.
Four Republicans and Every Democrat Opposed the CLARITY Act
For a bill to advance in the Senate, it requires 60 votes for cloture. The motion received 49 votes in favor and 50 against, with Senator Chris Coons not voting. This left the motion eleven votes short of cloture and one vote short of a bare majority.
Four Republicans broke ranks on the cloture motion. Senators Susan Collins, Josh Hawley, and Jerry Moran opposed the bill on its merits because community banks raised concerns about the stablecoin yield provision. Senator Thom Tillis voted no for procedural reasons but filed a motion to reconsider at 3:01 p.m., leaving a narrow path open for further discussion.
The Democrats who contributed to writing the bill ultimately voted against it. Senators Kirsten Gillibrand, Mark Warner, Cory Booker, Raphael Warnock, Ruben Gallego, Angela Alsobrooks, and Catherine Cortez Masto all participated in the negotiations. Senator Elissa Slotkin explained her no vote by labeling the ethics provisions “simply too thin,” emphasizing concerns over money-laundering safeguards and CFTC staffing.
The primary sticking point was the ethics package, which addressed officials’ spouses but excluded their children and was set to expire in January 2029. Talks in Tillis’s office broke down after a staff member for Senator Tim Scott indicated that negotiations were over. Following the vote, an industry leader texted reporter Eleanor Terrett simply stating, “It died.”
XRP Fell 5.6 Times Harder Than Bitcoin in the Same 24 Hours
XRP’s 7.98% drop to $1.29 far outstripped Bitcoin’s 1.42% decline to $75,924. Ethereum (CRYPTO:ETH) fell 3.15% to $2,404, while Solana (CRYPTO:SOL) decreased by 3.67% to $97.23. Each coin’s decline reflects how much of its legal standing depended on agency documents rather than statutes.
XRP had the most at stake in this outcome. Its commodity status relies on a joint interpretation from the SEC and CFTC issued on March 17, 2026, as well as the existence of five spot ETFs, Ripple Prime as a prime-brokerage offering, and RLUSD, Ripple’s stablecoin with $2.4 billion in circulation. Each of these aspects is tentatively secure but could be reversed by a different set of commissioners.
Bitcoin’s stability is not attributed to having a legal statute, since Congress has never passed one for any cryptocurrency, which is what this bill aimed to change. Bitcoin gains its strength from regulatory consensus, spot ETFs, and corporate treasuries buying every quarter, none of which required a Senate vote. Its 1.42% decline tracked WTI crude at $97.26 a barrel, up 16.1% on the month, and a 10-year Treasury yield of 4.97%.
Ethereum lost the staking and DeFi language that would have clarified how validators earn rewards and how decentralized exchanges register. Solana kept its designation as an SEC-recognized core ETF asset and suffered no specific loss, so its 3.67% fall connects more closely to market dynamics.
However, listed companies saw the steepest declines. Coinbase dropped approximately 8% and Circle around 11%, because market structure was the bill’s key objective and both were tied to it.
The SEC Can Fill the Gap, but a Future Chair Can Undo It
The SEC has four ongoing initiatives that address some of the areas Congress did not legislate. The SEC introduced its Regulation Crypto Assets proposal on September 1, 2026. The March 17 joint interpretation binds both the SEC and the CFTC. Additionally, a blockchain transfer-agent overhaul is underway, along with a roundtable on 24/7 trading scheduled for September 17.
These measures cover much of what Congress refused to solidify in law. However, the catch is that agency rulemaking is only binding for the agency that enacts it. A future chair could easily revoke a rule at any time, whereas Congress cannot undo a statute without passing new legislation.
This uncertainty makes the possibility of a second cloture vote still significant, even if the odds are long. Traders on Kalshi are pricing the chances of passage before January 1, 2027, at 20%. Polymarket, which had placed the bill at 82% likelihood in February, now estimates the chance of 2026 enactment at around 7%.
Moreover, the House has already canceled its late-September voting weeks, eliminating any theoretical opportunity for a complementary vote.
Every Coin Retains What It Had on Monday
The vote effectively blocked new legislation without repealing any existing regulations. XRP continues to hold its commodity classification as established by the SEC and CFTC in March. Solana remains a core ETF asset, Ethereum retains its ETF flows, and Bitcoin was not dependent on the statute in the first place. As a result, the market’s perception of these assets remains largely unchanged.
Congress does not decide where these four coins trade this week. CME FedWatch put a 25-basis-point hike at the September 16 meeting between 88% and 94% as of September 15, with the fed funds upper bound already at 3.75%. If the Fed hikes and the 10-year yield holds above 4.97%, XRP’s recovery becomes harder, because it now rests on rulemaking nobody has finalized.
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