Senate Rejects CLARITY Act, Cryptocurrency Industry Reels

The proposed CLARITY Act failed to advance in the U.S. Senate, dealing a crushing blow to the cryptocurrency industry.

The legislation required sixty votes to move forward and received opposition from all Democrats who voted. Galaxy Digital CEO Mike Novogratz expressed his disappointment on X, stating that 'Govt feels broken.' He attributed the failure to the approaching U.S. elections, which made it impossible for lawmakers to reach a compromise.

Coinbase CEO Brian Armstrong was also critical of the Senate's decision, calling it a 'disappointment' but not a permanent defeat. He suggested that the industry should focus on working with regulatory bodies such as the SEC and CFTC, rather than relying solely on Congress.