Crypto Regulation Bill Fails as Trump's Ties Spark Ethics Concerns

The Digital Asset Market Clarity Act aimed to define how the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would oversee the crypto sector, worth around $3 trillion.

Despite a massive campaign and lobbying operation that led to a 'pro-crypto Congress' in 2024 and the passage of the GENIUS Act last year, market structure reform remains out of reach for the industry.

A combination of factors led to the bill's demise, including the Senate ignoring the House version, which passed with bipartisan support. The Senate version was constructed piecemeal, and US President Donald Trump and his White House complicated negotiations.

The crypto industry's engagement with lawmakers was also criticized as 'scattershot,' and Democrats rejected an ethics deal they felt fell short of their demands. Time was not on lawmakers' side as they headed into a midterm election.