Senate Rejects Crypto Regulation Bill Amid Ethics Stalemate
The U.S. Senate has dealt a significant blow to the crypto industry by rejecting the Digital Asset Market Clarity Act in a 49-50 vote.
The bill aimed to create a federal regulatory framework for digital assets, giving the Commodity Futures Trading Commission authority over crypto spot markets and defining how different types of cryptocurrencies would be regulated.
Ethics rules surrounding President Trump's crypto holdings proved to be the central sticking point, with both parties unable to come to an agreement on restrictions that would prevent senior government officials from profiting off their crypto investments while in office.
Brian Armstrong, CEO of Coinbase, tweeted that Congress has stalled for too long and it's time for the SEC and CFTC to create clear rules under existing laws. Ripple also weighed in, saying the bill's failure is a 'tremendous missed opportunity' for American consumers and U.S. competitiveness.
The bill's failure leaves crypto regulation split between the SEC and CFTC with no clear federal framework in place, leaving room for interpretation and uncertainty.