Crypto Regulatory Bill Crashes on Senate Floor
The Digital Asset Market Clarity Act, a major cryptocurrency bill, failed to pass in the Senate after falling short of the 60-vote threshold in a 49-50 vote. The legislation aimed to establish a regulatory framework for the crypto industry by splitting oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The bill would have provided consumer protections, set rules for using crypto with traditional assets like mortgages and loans, and prevented platforms from collapsing without consequence. President Donald Trump and most congressional Republicans supported the Clarity Act.
However, Democrats demanded an ethics provision to prevent the president, vice president, members of Congress, and federal judges from issuing and sponsoring digital assets. Republicans argued they had made 126 changes to address Democratic concerns, but Democrats countered that these changes were not sufficient.