Clarity Act Fails in Senate Vote: Crypto Industry Eyes Regulatory Loopholes
The Clarity Act, a bill aimed at dividing crypto oversight between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), fell short of the 60 votes needed for cloture in the Senate.
The measure was meant to complement last year's Genius Act, which set federal rules for dollar-backed stablecoins. However, Democrats objected to the bill's ethics language, citing concerns that it would not restrain a president overseeing his own regulators. The Trump family drew $1.4 billion in crypto profits last year, and many Democrats argued that the ethics clause was insufficient.
Sen. Ruben Gallego (D-Ariz.) stated, 'This legislation failed squarely because Republicans refuse to say no to the president.'
Banks also raised concerns about the bill's stablecoin interest payments, which they feared would pull deposits out of community banks.