Senate Blocks Clarity Act, Stalling Crypto Framework Push

The Senate's attempt to advance the Clarity Act has stalled, at least for now. The bill, aimed at creating a framework for digital assets, fell short of the required 60 votes in favor on Tuesday, with 50 senators voting yes and 49 against.

Despite Republican leaders' efforts to tweak the bill over the weekend by adding new ethics curbs, it was not enough to sway the remaining holdouts. The proposal would have assigned responsibilities to both the Securities and Exchange Commission and the Commodity Futures Trading Commission, established registration rules, and tightened anti-money-laundering safeguards.

Crypto backers see this as a setback, but many are bracing for progress from regulators rather than Congress. Executives and investors argue that clear rules would reduce uncertainty and make it easier to attract long-term capital.