Bitcoin Spam Proposal Fails, CLARITY Act Delayed Amid Institutional Demand Surge

A contentious proposal aimed at ridding Bitcoin of spam transactions has been met with overwhelming rejection. BIP-110, an anti-spam soft fork, sought to eradicate non-financial transactions like Ordinals from the blockchain.

However, prominent advocates including Michael Saylor and Adam Back voiced opposition to the proposal, citing concerns over censorship and potential damage to Bitcoin's credibility.

The proposal's supporters secured only 2.5% support ahead of mandatory signaling on Saturday, prompting it to split into a minority chain that mined just two blocks in eight hours before stalling.

Meanwhile, efforts to pass the CLARITY Act have been delayed until September 15, with Senate Majority Leader John Thune citing opposition from Democrats as the reason for the postponement.