Senate Rejects Crypto Regulatory Bill Again

The Digital Asset Market Clarity Act has hit another roadblock in its journey through the US Senate. On Tuesday, the cloture motion to advance the bill was rejected, marking a setback for the crypto industry's efforts to establish a federal regulatory framework.

The legislation would establish separate categories for digital commodities and securities, with the CFTC overseeing the former and the SEC retaining jurisdiction over the latter. Despite revisions that incorporated 126 changes sought by Democrats, the bill still failed to secure enough votes to move forward.

Leading up to the vote, Democrats expressed frustration that Republican negotiators didn't meet their demands regarding ethics restrictions on federal officials' involvement in crypto ventures. The revised proposal would have given both the Justice Department and state attorneys general enforcement authority over relevant provisions.