Senate Rejects Clarity Act Amid Crypto Market Turmoil

The U.S. Senate has failed to pass the Clarity Act, H.R. 3633, after a cloture vote. The bill aimed to create a comprehensive regulatory framework for the crypto industry. However, it fell short of the necessary 60 votes, with 50 senators voting in favor and 49 against.

The failure of the bill sent crypto stocks plummeting, with Coinbase down nearly 9% to $174.42 and Circle down 9.4% to $88.26. The market reaction was anticipated as investors had already priced in the likelihood of a defeat.

The vote split along party lines on the ethics provisions, with some senators arguing that the compromise would have secured more Democratic votes. Sen. Ruben Gallego stated that the deal would 'bought a lot of Dem votes.'