Senate Blocks CLARITY Act, Sending Bitcoin Price into Free Fall

The U.S. Senate has blocked the CLARITY Act, a bill aimed at establishing a federal framework for digital assets and clarifying regulatory jurisdiction between the SEC and CFTC.

The vote was held on September 15, with 49 senators voting in favor and 50 against, falling short of the 60-vote threshold needed to move the bill forward. The CLARITY Act would have created clearer rules for exchanges and crypto firms, reducing regulatory uncertainty and establishing clear jurisdiction between the SEC and CFTC.

The vote came after last-minute changes were made to the bill, which included new ethics stipulations, increased enforcement authority for state attorneys general, and additional power for the Treasury Department on stablecoin deposit flows. The revisions were intended to address concerns from lawmakers, but ultimately failed to secure enough support.

Bitcoin's price has dropped significantly following the vote, falling below $76,000, while shares of Coinbase and Circle have also declined sharply.