Senate Fails to Advance Clarity Act Amid Ethics Dispute Over Trump Crypto Holdings
The U.S. Senate failed to advance the Clarity Act on Tuesday, leaving the crypto sector's regulatory efforts in limbo ahead of the November elections.
The bill aimed to create a broad federal framework for digital assets but fell short of the 60 votes needed to proceed due to Democratic objections over ethics concerns tied to President Donald Trump's crypto holdings.
The Democratic opposition has focused on Trump's growing crypto interests, including World Liberty Financial and the TRUMP memecoin. Republicans had released revised language covering non-decentralized finance protocols and added provisions giving state attorneys general more room to enforce ethics rules, but Democrats said these changes did not resolve their concerns.
The Senate's failed vote leaves little time for another attempt before lawmakers turn their attention to the midterm elections. Even if the Senate revives and passes the measure, the House would still need to approve it, making final action before November increasingly difficult.