Clarity Act Fails in Senate, Crypto Markets Take a Hit
The Digital Asset Market Clarity Act failed to advance in the US Senate on Tuesday, leaving the crypto industry in limbo. The legislation, which had been negotiated by lawmakers from both parties over more than 600 pages of compromise language, required 60 votes to move forward but fell short.
Republican Senator Cynthia Lummis made a final appeal before the vote but was unable to secure sufficient support. The defeat could send the legislation back to the drawing board unless lawmakers find a way to revive the process before the congressional session ends.
Crypto markets took a hit as a result of the vote, with Bitcoin falling 4.9% from Monday's high of nearly $80,000 to trade around $75,960 on Tuesday afternoon. Ethereum declined 3.9% to approximately $2,440.
The industry may now focus more heavily on the Securities and Exchange Commission and the Commodity Futures Trading Commission, which are developing regulatory initiatives for digital assets. However, SEC Chairman Paul Atkins has warned that regulatory guidance and exemptions may not be durable without legislation supporting them.