Senate Blocks Crypto Regulation Bill Amid Trump Profits Concerns
The US Senate has blocked the Clarity Act, a bill aimed at establishing a regulatory framework for the cryptocurrency market.
The bill's defeat was largely due to Democratic concerns over President Trump's and his family's massive cryptocurrency profits. Critics argued that the legislation would benefit Trump's private financial gain.
Senators Elizabeth Warren and Mark Warner expressed their opposition, stating that they couldn't pass a law for the industry while allowing the president to personally profit from it.
The bill's collapse has led to a sense of heightened political uncertainty, causing Bitcoin and other cryptocurrencies to plummet. Bitcoin fell over 5% after news of the Senate vote broke, dropping to $74,911. Ether, the second-largest cryptocurrency by market capitalization, fell about 7% in the same period.
With Congress set to enter recess ahead of the November midterm elections, the bill's passage before year-end is unlikely.