The U.S. Senate has stalled legislation that would bring the cryptocurrency market further into the federal financial system, after a procedural vote on the Clarity Act failed 49-50. The bill needed 60 votes to move forward, and the defeat leaves its path to passage uncertain before lawmakers leave for the midterm election recess.
The Clarity Act is designed to clarify the legal status of cryptocurrencies and assign regulatory authority, including giving the Commodity Futures Trading Commission oversight of spot markets for digital commodities such as bitcoin while the Securities and Exchange Commission would supervise securities-type crypto assets. It would also bring exchanges, brokers, custodians and decentralized finance into the federal regulatory framework and define the government’s role over payment stablecoins.
All Democrats voted against the measure, and several Republicans also broke ranks, including Sens. Susan Collins of Maine and Josh Hawley of Missouri. The article says negotiations collapsed even after a proposed Republican amendment to restrict senior officials’ memecoin activity, as Democrats pressed for a stronger requirement involving the president’s disposal of assets.
President Donald Trump had backed efforts to promote the crypto industry, but the bill became tangled in concerns over potential personal gain by him and his family. With the Senate split 53 Republicans, 45 Democrats and two independent lawmakers who caucus with Democrats, the year-end outlook for the measure remains unclear.
