Senate Blocks Clarity Act, Crypto Industry Left Waiting for Regulation
The US Senate's vote to block the Clarity Act has dealt a major blow to the crypto industry, which had been pushing for a comprehensive market structure framework. The procedural vote failed to clear the 60-vote hurdle, with 50 senators voting in favor and 49 against.
Leading up to the vote, Democrats expressed frustration that Republican negotiators didn't meet their demands regarding ethics, particularly regarding profits gained from crypto ventures by President Donald Trump and his family. Sen. Ruben Gallego, D-Ariz., a key Democratic negotiator, said 'The compromise we had was a good ethics compromise that would have bought a lot of Dem votes.'
The price of Bitcoin was last down 3%, while Coinbase and Circle shares slid 8% and 10%, respectively, amid the broader market sell-off. The failure of the Clarity Act likely means the crypto industry will have to wait until next year for clearer rules.