US Senate Rejects Clarity Act, Sentiment Plummets in Digital Asset Market

The US Senate failed to pass the Clarity Act, a bill aimed at restructuring the digital asset market, which would have given the Commodity Futures Trading Commission (CFTC) primary regulatory authority over the industry. The vote of 49 in favor and 50 against fell short of the required 60 votes needed to introduce the bill for deliberation.

The rejection of the Clarity Act sent shockwaves through the market, with major virtual asset-related companies such as Bitcoin, Ethereum, Coinbase, and Circle experiencing a significant decline in stock prices. Bitcoin's price plummeted over 5%, while Ethereum dropped by more than 8% at one point during the day.

The failure of the bill was attributed to opposition from both Democrats and Republicans, with concerns over President Donald Trump's virtual asset business interests and the lack of ethical regulations being major sticking points. The traditional banking sector also strongly opposed the bill due to its proposed restrictions on stablecoin compensation.