Trump-Backed Crypto Bill Stalls in Senate Amid Democratic Opposition

The Trump-backed Clarity Act, aimed at setting a regulatory framework for the crypto sector, has suffered a bruising defeat in the US Senate. The bill, which would have formally split oversight between the SEC and CFTC, was championed by both crypto executives and President Trump.

However, it faced entrenched Democratic opposition, with critics arguing that the proposed regulations were too lenient on the industry without enough safeguards. In a procedural vote, the bill failed to clear the 60-vote threshold, receiving only 49 'yes' votes, far below the needed majority.

The defeat is a significant setback for the crypto sector, which has been hoping to pass the Clarity Act sooner rather than later. The industry had amassed tens of millions of dollars to spend on upcoming elections in an effort to push the bill through.

Opponents of the bill pointed out that it would have given the CFTC, a smaller regulator, majority control over the crypto sector. They also argued that the ethics clause intended to prevent presidents and elected officials from profiting from the industry was inadequate.