Clarity Act Fails in Senate Vote, Leaving Crypto Industry in Regulatory Limbo
The Clarity Act, a comprehensive cryptocurrency legislation backed by former President Donald Trump, failed to advance in the US Senate. The bill needed 60 votes to move forward but fell short with a 50-49 vote count in favor. Four Republican senators, Jerry Moran, Rand Paul, Josh Hawley, and Thom Tillis, joined all Democrats in opposing the measure.
The legislation aimed to create a regulatory framework for digital assets, which crypto companies say would provide them with a solid legal foundation. However, opponents were not swayed by a revised text of the bill released on Sunday night. The deep-pocketed industry had spent hundreds of millions of dollars campaigning to advance the bill.
Trump's regulators will now fill the policy void left by the failed legislation. Industry experts have said that only Congress can create a lasting regulatory framework, and without it, regulations may be vulnerable to shifting political climates and court challenges. Bitcoin fell more than 5% as the vote appeared on track to fail, its biggest daily percentage decline since June.