Crypto Bill Crashes in Senate Vote
The Digital Asset Market Clarity Act, a comprehensive cryptocurrency legislation backed by President Donald Trump, has failed to advance in the US Senate. The bill needed 60 votes to move forward but only secured 50, with all Democrats and four Republican senators voting against it.
The defeat is a major blow to efforts to establish a federal framework for digital-asset markets. Community banks opposed provisions that would allow rewards on stablecoin holdings, which they argued could pull deposits out of traditional lenders and reduce funding available for farmers and small businesses.
Senator Elizabeth Warren called the bill 'massive risks' to families, national security, and the economy. She also claimed it would benefit Trump's ability to profit from crypto, as he has earned over $1.4bn from his family's ventures.
The defeat leaves a regulatory void for the crypto industry, which will now rely on regulators like the SEC and CFTC to create rules. However, these efforts may be challenging due to the changing political climate and potential court challenges.