Senate Blocks Digital Asset Market Clarity Act, Sending Crypto Markets Reeling

The U.S. Senate blocked the Digital Asset Market Clarity Act on Tuesday, dealing a major setback to the crypto industry that had spent years and hundreds of millions lobbying for clarity.

The bill aimed to define how U.S. authorities treat different types of cryptocurrencies and blockchain projects, splitting oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

However, negotiations stalled over ethics provisions designed to bar senior government officials from maintaining business ties to the crypto industry.

The outcome sent markets into a sell-off, with Bitcoin sliding from nearly $80,000 to around $75,800, down 2.8% in 24 hours.