Senate Rejects Clarity Act, Stalling Crypto Market Regulations

The US Senate has rejected cloture on the CLARITY Act, a bill that aimed to set federal rules for crypto markets and clarify the roles of regulatory bodies. The vote fell short by eleven votes, with a 49-50 margin not meeting the required 60.

Nevada Senators Catherine Cortez Masto and Jacky Rosen were among those who voted against the bill. Senator Cortez Masto expressed concerns that it would undermine law enforcement's ability to investigate crypto crimes. She specifically pointed out that the bill would allow prediction markets to continue to operate, which she claims perpetuate illegal gaming operations that ignore state and tribal laws.

The Indian Gaming Association had lobbied against any version of the bill that didn't explicitly protect tribal sovereignty. Chairman David Bean celebrated the failed vote as a victory for tribal sovereignty, but warned that the fight against prediction markets is far from over.