CLARITY Act Hits Roadblock as Senate Fails to Advance Landmark Crypto Bill
The CLARITY Act, a landmark crypto bill in the US Senate, has stalled after failing to secure the necessary votes for advancement. In a Tuesday vote, Senators voted 49-50 against ending preliminary debate on the legislation, falling short of the required 60 votes.
The bill aims to regulate digital assets by placing primary responsibility with the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). It also includes rules for token issuers, banks, and software developers. However, lawmakers remain divided on key issues such as ethics, financial risks, and consumer protection.
Senator Elizabeth Warren criticized the bill, arguing that it could undermine consumer protections and allow President Donald Trump to profit from his crypto businesses through influence over industry regulations. She also claimed that the bill would narrow enforcement by individual states and empower big banks to take on riskier crypto investments.