Crypto Clarity Act Fails to Advance in Senate Vote

The Crypto Clarity Act, a bill aimed at creating durable rules for cryptocurrency in the US financial system, has failed to advance in the Senate. The vote was 49-50, with three Republicans voting against it.

Despite President Trump's support and characterisation of himself as the crypto industry's biggest champion before the last presidential election, his personal business interests have sparked opposition from Democrats. Chief among their concerns is that the bill's ethics restrictions are inadequate to prevent dealings like those Trump has engaged in since his election.

Republicans released a 'final draft' of the Clarity Act on Monday, containing new ethics language and a role for state attorneys general in enforcement. However, this did little to silence critics, with Sen. Elizabeth Warren saying that the changes are a 'weak fig leaf' that will do nothing to stop Trump from making further profits.

The bill seeks to address disagreement over how existing laws governing securities and commodities can be applied to digital assets. Regulators have already begun crafting rules for the industry, but Congress must pass legislation to make these lasting. The SEC's chairman has called on Congress to advance the Clarity Act, but made it clear that his agency will continue to 'modernize' federal securities regulation regardless of the vote's outcome.

The failure of the bill could have implications for the crypto market, with the price of Bitcoin slipping 1.3% following the vote and crypto-linked stocks falling harder.