Senate Delay Crushes Hopes for Crypto Regulation

The U.S. Senate has delayed a vote on the Clarity Act, a move that has dealt a significant blow to crypto advocates who had hoped for regulatory clarity in the sector.

The Clarity Act aims to clearly define what qualifies as a blockchain and a cryptocurrency, which would determine whether cryptocurrencies are regulated by the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).

Passage of the bill requires 60 votes in the Senate, but with the delay, the odds of its passage have plummeted to 16% on the prediction platform Kalshi.

Senate Majority Leader John Thune has hinted that Democrats are unlikely to support the bill, which would make it even harder for the Clarity Act to pass.