US Senate Blocks Bipartisan Crypto Regulation Bill

The US Senate has failed to advance the Clarity Act, a comprehensive attempt to federally regulate cryptocurrency. The bill, which had already passed in the House of Representatives, aimed to set ground rules for regulating the digital currency market, including which federal agency would have oversight and how it would be taxed.

However, the Senate was unable to reach the 60 votes necessary to bring the act to the floor for a vote. The legislation was seen as a game-changer in the emerging market, but lawmakers were gridlocked on how to regulate cryptocurrency, deciding whether to govern it as a true currency or a commodity.

Ramnath Chellappa, a professor of information systems at Emory University's Goizueta Business School, noted that 'the discussion or the question about the legality of crypto, I think we are well past that. People are using it, and not only individuals, but we have banks and we have ETFs [exchange-traded funds] and everybody investing in it.'

Georgia lawmakers who voted no on the Clarity Act's procedural vote also expressed concerns over the potential for the legislation to enrich President Donald Trump, who has publicly disclosed purchases of cryptocurrency.