Senate Blocks Clarity Act: Crypto Industry Left Reeling
The Clarity Act has been blocked in the Senate, likely ending its chances of passing in 2026. The bill aimed to clarify which digital assets are securities, commodities, or stablecoins and how they would be regulated. It needed 60 votes to advance but received only 49 in favor.
President Donald Trump had urged lawmakers to pass the bill, but Republicans claimed that Democrats were deliberately holding it back. The bill's fate has been a subject of controversy for months, with some lawmakers accusing others of trying to stall it.
Bitcoin's price dropped sharply after the news, falling 4% in the last 24 hours to $75,997. Critics of the bill, such as Senator Elizabeth Warren, argued that it posed a risk to families and could lead to an economic crash. They also claimed that Trump has unfairly benefited from crypto deals and that his family's ventures have profited from digital assets.
The Clarity Act had been passed by the House of Representatives last year but stalled in the Senate. Despite its blocking, regulators are still pushing ahead with rules for the industry.