US Senate Blocks CLARITY Act Amid Divided Congressional Opinion

The US Senate has blocked the CLARITY Act, a bill aimed at establishing a federal regulatory framework for digital assets. The vote was 49-50, falling short of the 60 votes required to advance the legislation.

Republican Senator Cynthia Lummis, who sponsored the bill, argued that it had grown to 635 pages after over a year of negotiations and incorporated extensive Democratic demands, including new restrictions on politicians' crypto investments.

Lummis claimed that President Trump agreed to historic checks and concessions, but Democrats continued to move goalposts, seeking independent outside enforcement.

The failure of the bill leaves US digital-asset regulation largely dependent on existing SEC and CFTC authority while Congress remains divided over how far lawmakers should go in regulating the industry and the financial interests of public officials.