US Senate Blocks Landmark Crypto Bill, Leaving Industry in Limbo
The US Senate has blocked a landmark crypto bill known as the CLARITY Act, which aimed to clarify supervision of digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. The bill fell short by just 11 votes, with 49 in favor and 50 against.
Bitcoin's price dropped nearly 34% over the past 24 hours, dipping below $76,000, while HYPE, the token behind decentralized exchange Hyperliquid, lost around 4% to below $78. Most major tokens followed suit.
The bill had been a compromise effort, with US President Donald Trump agreeing to ethics restrictions and state attorneys general having a role in enforcing those rules. However, Democratic Senator Elizabeth Warren and others opposed the bill, citing concerns over investor protection and national security.
Senator Cynthia Lummis, who has led crypto legislation in the Senate, stated that the failed vote likely means clearer rules for the industry will have to wait until next year. Regulators may instead write the rules themselves, but analysts warn that agency regulations can be rewritten by future administrations.