Senate Rejects CLARITY Act, Crushes Hopes for Cryptocurrency Regulation Clarity
Bitcoin has come under fire from gold advocate and longtime critic Peter Schiff after the U.S. Senate failed to advance the CLARITY Act, a bill aimed at providing clarity on cryptocurrency regulations.
The legislation needed 60 votes to move forward but fell short due to opposition from all Democrats who voted. Galaxy Digital CEO Mike Novogratz described the outcome as a 'crushing defeat' for the industry and said that the government 'feels broken'. He attributed the failure to the approaching U.S. elections, which had shaped lawmakers' calculations.
Coinbase CEO Brian Armstrong acknowledged the setback but noted that the legislation might still 'live to fight another day' through bipartisan negotiations. However, he also emphasized that the cryptocurrency industry can no longer rely on Congress for regulatory clarity and suggested that existing authorities at the SEC and CFTC have sufficient authority to establish clearer rules.