CLARITY Bill Fails in Senate, Leaving Crypto Regulation Uncertain
The US Senate failed to advance the CLARITY Act, a bill designed to create a federal market-structure framework for digital assets. The vote was 50-49, short of the 60 votes required.
The bill aimed to clarify boundaries between the SEC and CFTC and establish rules for exchanges and other market participants. However, crypto companies argued that restricting stablecoin rewards could reduce competition and innovation.
The failure leaves the US without a comprehensive congressional market-structure framework. The SEC and CFTC will continue developing the framework through their existing authorities, while Congress can still revisit market-structure legislation.
Bitcoin initially reacted negatively to the news, falling over 5% during the September 15 session. However, it subsequently stabilized and recovered, trading around the mid-$76,000 area on September 16-17.