Senate Blocks Clarity Act, Leaving Crypto Industry Without Lasting Regulatory Framework

The US Senate has failed to advance the Clarity Act, a comprehensive cryptocurrency legislation backed by President Donald Trump. The bill aimed to create a regulatory framework for digital assets and was championed by Republicans for months.

The vote fell short of the 60-vote threshold needed to advance most legislation in the 100-seat chamber. Four Republican senators joined all Democrats in voting against it, with the final count being 50-49 in favor. The bill's supporters had released a new text on Sunday night in an effort to address concerns from the banking industry and some Democrats.

Crypto companies spent hundreds of millions of dollars campaigning for the bill, which they say would put them on more solid legal footing. Trump, who has earned over $1.4 billion from his family's crypto ventures, had urged Congress to pass it.

The vote effectively puts the bill on ice as Congress prepares to depart Washington ahead of the November midterm elections. Industry experts have said only Congress can create a lasting regulatory framework, and without legislation, regulations will be vulnerable to shifting political climates and court challenges.