US Senate Rejects CLARITY Act, Delivering Setback to Crypto Regulation
The US Senate failed to advance the CLARITY Act, a bill aimed at creating a clear regulatory framework for the crypto market. The 49-50 vote fell short of the required 60 votes needed for cloture, with no Democratic senators supporting the legislation. This setback deals a significant blow to the industry's hopes for comprehensive US crypto market structure legislation.
The defeat was largely attributed to a breakdown in bipartisan negotiations over ethics and conflict-of-interest provisions tied to public officials' crypto holdings. Several Democrats who previously supported the GENIUS Act stablecoin legislation broke against CLARITY, including Sen. Angela Alsobrooks and Sen. Catherine Cortez Masto.
Ripple CEO Brad Garlinghouse called the result a missed opportunity for US consumers and the country's competitiveness in digital assets, saying 'consumers and US competitiveness got left behind.'