Senate Blocks Clarity Act, Regulators May Step In

The Senate has rejected cloture on the CLARITY Act, a bill aimed at creating a clear regulatory structure for digital asset markets in the United States.

The vote fell short of the 60 votes needed to advance, with 49 senators voting in favor and 50 against. The seven Democratic senators who sponsored the bill, led by Kirsten Gillibrand, expressed disappointment but vowed to continue working towards its passage.

The CLARITY Act would divide oversight duties between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), providing clear rules for crypto companies and consumer protections. Supporters argue that it would create regulatory certainty and expand opportunities in the industry.

However, analysts at StoneX have predicted that the bill is effectively dead for this session of Congress due to limited legislative days left before campaign season begins.