CLARITY Act Fails to Pass in Senate
The CLARITY Act, a key bill to regulate digital assets, failed to advance in the Senate on Tuesday. The legislation fell short of the 10 votes needed to reach the 60-vote threshold required to move it forward.
Top leaders of cryptocurrency and fintech firms expressed disappointment at the setback. Brian Armstrong, co-founder and CEO of Coinbase Global Inc., said that crypto regulation can no longer wait on Congress. He argued that the U.S. Securities and Exchange Commission (SEC) and United States Commodity Futures Trading Commission (CFTC) can establish clearer rules under existing authority.
Armstrong stated that 'clarity is coming to crypto regardless' and that 'Crypto can't be uninvented.' He also highlighted that Senators had two choices: to vote 'Yes' on the CLARITY Act or let other countries lead in building the future of finance. Armstrong emphasized that history - and the crypto voter - won't forget.
Other top fintech leaders, including Mike Novogratz, founder and CEO of Galaxy Digital Inc., and Brad Garlinghouse, CEO of Ripple, also expressed disappointment at the setback. Novogratz said that the government 'feels broken' after the CLARITY Act failed to pass, while Garlinghouse stated that the act's failure to pass 'stings.' He added that the SEC and CFTC will now need to continue to 'work hard' to fill the legislative gap.
Some analysts believe that the setback is not a permanent one. James E. Thorne, Chief Market Strategist at Wellington Altus, commented that while the collapse of the CLARITY Act is a setback for crypto regulation, the SEC and CFTC can still establish clearer rules under existing authority. He stated that the U.S. has an opportunity to lead the digital-asset industry as other countries develop their own regulatory frameworks.