Senate Rejects Crypto Bill, Sending Markets into Freefall

The US Senate's attempt to pass the Digital Asset Market Clarity Act has ended in failure, sending shockwaves through the crypto market. The legislation, which aimed to provide a comprehensive federal framework for digital asset markets, fell short of the 60 votes required to advance.

More than 40 senators voted against advancing the bill, with Senate Democrats submitting a counterproposal seeking further changes that were ultimately rejected by Republicans. Senator Cynthia Lummis, one of the bill's leading Republican negotiators, said Democrats had largely returned to positions held before the August recess despite concessions made by Republicans.

The failed vote has led to a decline in crypto markets, with Bitcoin slipping toward $76,000 and Ether falling below $2,400. The move extended a reversal that began Tuesday morning after optimism surrounding the bill had briefly pushed crypto markets higher at the start of the week.