Senate Rejects Clarity Act, Leaving Crypto Firms in Regulatory Limbo
A major setback for cryptocurrency firms and Republican lawmakers was dealt by the US Senate on Tuesday when the Clarity Act failed to advance. The bill, which aimed to establish a regulatory structure for digital assets, fell short of the required 60 votes with a 50-49 vote in favor.
Four Republicans, Senators Jerry Moran, Susan Collins, Josh Hawley, and Thom Tillis, voted against the measure alongside all Senate Democrats. Tillis changed his vote from yes to no as a procedural maneuver, preserving his right to call up the measure for reconsideration later.
The Clarity Act was viewed by crypto firms as a way to secure firmer legal ground. The sector invested hundreds of millions of dollars in lobbying efforts to promote the bill.
President Donald Trump had called on Congress to approve the measure, despite being a beneficiary of his family's cryptocurrency ventures, which have generated over $1.4 billion. He previously sought financial support from the crypto sector during his 2024 campaign, where he declared himself a 'crypto president.'