Circle Internet Group CEO Jeremy Allaire said lawmakers are close to resolving disputes over the CLARITY Act, despite the Senate’s failure Tuesday to advance the bill and prediction-market odds of passage falling to single digits. Polymarket assigns the legislation a 7% chance of becoming law in 2026, with about $21.3 million traded. The Senate vote fell short of the 60 votes required, sending Circle down 8.9% and Coinbase Global down 5.9%; Bitcoin also fell sharply. The bill addresses which digital assets are securities or commodities and what rules apply to crypto trading platforms, issues that also affect Robinhood Markets. Circle is less directly exposed because the GENIUS Act already established federal stablecoin rules, but CLARITY would cover the broader market where Circle wants USDC used. Reserve income represented 95.2% of Circle’s second-quarter revenue. Sen. Angela Alsobrooks said a deal remained possible, while Sen. Cynthia Lummis said Republicans had no further concessions to make. Sen. Thom Tillis said a procedural motion to reconsider allows negotiations to continue.