US Senate Rejects Comprehensive Cryptocurrency Bill

The US Senate failed to advance the Clarity Act, a comprehensive cryptocurrency bill backed by President Donald Trump. The vote fell short by 10 votes, with four Republican senators joining all Democrats in voting against it. The bill aimed to create a regulatory framework for digital assets, which would have put crypto companies on more solid legal footing.

Bitcoin, the world's largest cryptocurrency, dropped over 5% as the vote appeared to fail, its biggest daily percentage decline since June. Shares of Coinbase and stablecoin issuer Circle fell by up to 10%. The bill was seen as a major blow for digital asset companies and Republicans who had championed it.

Despite efforts from Senate Republicans to address concerns from the banking industry and some Democrats, the opponents were not swayed. The vote put the bill on ice, with Congress set to depart Washington ahead of the November midterm elections.