Senate Vote Spells Chaos for US Crypto Market
A bill aimed at regulating the US crypto market, known as the Clarity Act, has been voted down by senators. The vote of 49-50 against the motion to proceed was largely due to concerns from Democrats that the proposed ethics measures would have led to further enrichment of the Trump administration.
The banking industry also voiced its opposition to the bill, warning lawmakers that it could cause customers to abandon traditional bank accounts in favor of digital ones. The price of Bitcoin hit an intraday low of $74,967.97 on September 15 after news of the vote broke.
Shares in Coinbase and Circle saw significant drops following the news, with prices plummeting by double-digit percentages. The failure to establish a unified regulatory framework for the US crypto market has left investors worried about the lack of clarity and potential enforcement disparities across different states and federal bodies.