Clarity Act Fails to Clear Hurdle in US Senate
The Digital Asset Market Clarity Act failed to pass in the US Senate after four Republicans and all Democrats voted against it. The bill aimed to establish a regulatory framework for digital assets, including specifying which agencies have oversight and how commodity exchanges can be regulated like other financial institutions.
Banks had expressed concerns that stablecoin rewards could lead to deposit flight, but Republican senators made last-minute changes to address these fears. They provided the Secretary of the Treasury with new powers to block stablecoin rewards if they determine it's having a 'substantial detrimental impact' on community banks.
Despite these changes, Democrats remained unconvinced. Senator Elizabeth Warren called the ethics text added to the bill a 'weak fig leaf', saying it would not prevent President Trump from making profits in crypto.