Clarity Act Stalls in Senate Amid Crypto Market Decline
The Clarity Act, aimed at regulating the digital asset market, has stalled in the US Senate. The bill failed to gather the required 60 votes needed to invoke cloture, receiving 49 YEA and 50 NAY votes. Senator Cynthia Lummis blasted Democrats for voting against the bill, despite negotiations between Republican lawmakers and a push from President Donald Trump.
Lawmakers have acknowledged that the bill isn't dead yet, but it will need further support to move forward. An updated version of the bill was released over the weekend, including concessions on stronger crypto ethics rules and a circuit breaker on stablecoin yields. However, this wasn't enough to sway undecided Senators.
18 attorneys general, led by Letitia James of New York, have urged Congress to oppose the bill, citing concerns that it could weaken states' ability to pursue crypto fraud cases. The Securities and Exchange Commission (SEC) has signaled that it will issue rules addressing some issues if Congress fails to advance the bill.
The bill's failure has led to a decline in global crypto prices, with Bitcoin falling 4% to $76,000 and Ethereum dropping 5% to $2,400. Other top altcoins have also taken a hit, with XRP, Solana, Zcash, and Hyperliquid falling by 12%, 5%, 6%, and 5% respectively.