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US Senate blocks Clarity Act to regulate digital assets

The US Senate failed to advance the Digital Asset Market Clarity Act (Clarity Act) following a procedural vote that resulted in 49 votes in favor and 50 against. The bill, which sought to establish a federal regulatory framework for digital assets by clarifying the jurisdictional roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), fell short of the 60-vote threshold required for cloture.

Democratic opposition was centered on ethics provisions. Legislators, including Senator Elizabeth Warren, argued that the bill lacked sufficient safeguards to prevent President Donald Trump and his family from profiting from cryptocurrency interests while in office. While Republicans had introduced amendments to address some concerns, negotiations failed to secure the necessary bipartisan support.

The legislative setback triggered immediate market volatility, with major cryptocurrencies like Bitcoin and Ethereum experiencing significant price drops. Cryptocurrency-related stocks, such as Coinbase and Circle, also saw declines. Although the bill was not formally defeated and remains on the Senate calendar, its progress is considered uncertain heading into the upcoming midterm elections.

Entities

Bitcoin · CFTC · CoinGecko · Commodity Futures Trading Commission · Digital Asset Market CLARITY Act · Donald Trump · Elizabeth Warren · Ethereum · SEC · Securities and Exchange Commission · U.S. Senate · US Senate

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