WASHINGTON — The Senate on Tuesday blocked a sweeping cryptocurrency bill, dealing a major setback to the digital-asset industry after months of contentious bipartisan negotiations. Senators voted 49-50 against advancing the Clarity Act, which would have divided federal oversight of digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. The vote stopped the measure at its first procedural hurdle. All Senate Democrats opposed the bill, including roughly a dozen who had spent months negotiating with Republicans. They said revisions released by Republicans over the weekend did not impose sufficient ethics restrictions on President Donald Trump or adequately protect consumers. Democrats have focused on Trump’s ability to profit from crypto businesses linked to his family. Trump reported more than $1.4 billion in income from several crypto ventures in 2025, according to financial disclosures. Democrats also sought changes to provisions involving prosecutors’ authority to pursue illicit finance. Three Republicans — Sens. Susan Collins of Maine, Josh Hawley of Missouri and Jerry Moran of Kansas — also voted against advancing the bill. Sen. Thom Tillis of North Carolina initially voted for the measure before changing his vote to no and filing a motion to reconsider, leaving Republicans a procedural avenue to potentially bring it back to the floor. Several Republicans who supported moving forward with the bill said they would not ultimately back it without changes sought by the banking industry. The dispute added another obstacle to legislation that had already struggled to maintain bipartisan support. Democrats sent Republicans a counterproposal late Monday outlining their requested changes. But the parties remained divided before Tuesday’s vote, and Democrats rejected Republican calls to advance the legislation while continuing negotiations on the Senate floor. Crypto companies have spent hundreds of millions of dollars lobbying Congress for legislation that would establish clearer rules for digital-asset trading. Industry supporters argue that a federal framework would provide legal certainty and help move cryptocurrency into the mainstream financial system. The Senate vote leaves that effort stalled while questions over presidential conflicts of interest, consumer safeguards, financial oversight and enforcement remain unresolved.