US Senate Rejects Clarity Act, Leaving Crypto Regulation in Limbo

The US Senate rejected the Digital Asset Market Clarity Act on Tuesday, falling short of the required 60 votes to advance the legislation.

The bill aimed to establish a statutory regulatory framework for US crypto markets by dividing oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Negotiations over the 600-page draft stalled due to disagreements over ethics rules, with Democratic lawmakers arguing the bill lacked sufficient conflict-of-interest safeguards.

Prior to the vote, publicly traded cryptocurrency companies saw significant market declines, with Coinbase Global Inc. dropping nearly 9 percent and Circle Internet Financial falling 9.4 percent.