Senate Rejects CLARITY Act as Regulators Take Center Stage

The Senate failed to advance the CLARITY Act on Tuesday, falling short of cloture with a 49-50 vote. The Digital Asset Market Clarity Act aimed to give commodity treatment for crypto, CFTC licensing, and a token launch exemption.

Gemini co-founder Tyler Winklevoss said the industry may now turn to regulators as a 'Plan B' for clearer rules. Winklevoss directed his comments toward SEC Chair Paul Atkins and CFTC Chair Michael Selig, claiming they would be writing Clarity through rulemaking.

Senate Banking Chair Tim Scott blamed Senate Democrats for the cloture motion's failure, saying it was time for the SEC and CFTC to set clearer rules of the road for digital assets until Congress legislates.