Senate Fails to Advance CLARITY Act, Stalling Crypto Market Rules
The US Senate failed to advance the CLARITY Act on Tuesday, voting 49-50 on a cloture motion that fell short of the required 60 votes. The defeat likely stalls federal rules for crypto markets and prediction markets until after the November midterms.
The bill, H.R. 3633, aimed to establish rules for crypto markets and clarify the split responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Despite its intentions, some senators expressed concerns about its impact on tribal sovereignty and law enforcement's ability to investigate crypto crimes.
Nevada Democrats Catherine Cortez Masto and Jacky Rosen voted no, with Cortez Masto stating that the bill would allow prediction markets to continue perpetuating illegal gaming operations that ignore state and tribal law. The Indian Gaming Association also opposed the bill, with Chairman David Bean calling the vote a victory for tribal sovereignty.