CLARITY Act Hits Roadblock After Failing Senate Vote

The CLARITY Act, a bipartisan bill aimed at regulating the cryptocurrency market, has stalled in the Senate after failing to advance on September 15. The bill faced opposition from various groups, including crypto firms and trade associations, banks, law enforcement, regulators, and lawmakers.

Early drafts of the bill drew criticism over issues such as DeFi, tokenization, CFTC authority, and stablecoin yield rules. Coinbase CEO Brian Armstrong initially opposed the January draft due to these concerns but later backed a revised version.

The ethics issue also played a significant role in the bill's failure, with Senate Democrats citing President Donald Trump's reported $1.4 billion in crypto gains as a reason for not supporting the bill.