US Senate Blocks Crypto Bill Amid Market Volatility
The US Senate's attempt to pass comprehensive cryptocurrency legislation has hit a roadblock. The Clarity Act, backed by President Donald Trump, failed to advance due to lack of votes, falling short by 10 votes in the 100-seat chamber.
The bill aimed to create a regulatory framework for digital assets, which crypto companies say would put them on a more solid legal footing. However, opponents were not swayed by changes made to the bill over the weekend, and it ultimately received 50 votes in favor with 49 against.
Coinbase CEO Brian Armstrong expressed disappointment over the vote's outcome, stating that 'The SEC and CFTC have the tools they need to create clear rules under existing authority.' Bitcoin suffered its biggest daily percentage decline since June, falling more than 5%, while shares of Coinbase and stablecoin issuer Circle fell as much as 10%.
The failure of the Clarity Act leaves a regulatory void for the crypto industry, with experts warning that only Congress can create a lasting framework. Without legislation, regulations will be vulnerable to shifting political climates and court challenges.