Senate Democrats joined several Republicans Tuesday to block legislation that would establish a comprehensive federal regulatory framework for cryptocurrency, as negotiations broke down over ethics provisions involving President Donald Trump’s cryptocurrency holdings.

The Senate voted 49-50 on a motion to advance the Digital Asset Market Clarity Act, falling short of the 60 votes required to move forward. The bill would establish federal rules for digital assets and clarify the respective roles of the Securities and Exchange Commission and Commodity Futures Trading Commission.

Democrats had demanded stronger restrictions on federal officials’ cryptocurrency activities, particularly provisions addressing Trump’s investments and potential conflicts of interest. Senate Republicans released revised legislation that included ethics provisions sought by Democrats, including a role for state attorneys general in enforcement. Trump agreed to the changes, but Democrats ultimately said the provisions did not go far enough.

Republican senators backing the measure said the revised bill incorporated 126 substantive changes requested during negotiations and argued that the framework would provide clearer rules for the digital asset industry. Industry groups have also pushed for federal standards, saying regulatory uncertainty has complicated the growth of cryptocurrency businesses in the United States.

The defeat leaves cryptocurrency regulation divided among existing federal and state authorities. The bill's failure also leaves future efforts to establish a broader federal framework uncertain as Congress moves toward the November midterm elections.