US Senate Blocks Key Cryptocurrency Market Regulation Bill
The US Senate failed to advance the Digital Asset Market Clarity Act, which was intended to create comprehensive federal rules for the cryptocurrency market. There were not enough votes to begin consideration of the bill, and after the vote, shares of the largest American crypto companies plummeted.
This was reported by CBS News. The official voting results were also released by the US Senate.
The procedural vote took place on September 15. 49 senators voted to proceed to consideration of the CLARITY Act, and 50 voted against. To overcome the procedural hurdle, at least 60 votes were required.
All Democrats who took part in the vote opposed it, as did four Republicans.
The CLARITY Act was intended to establish rules for the American digital asset market and to more clearly delineate the powers of the two main financial regulators – the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
One of the goals of the bill was to determine which digital assets should be regulated as securities and which as digital commodities. Supporters of the law argued that the current division of responsibilities between the SEC and CFTC creates legal uncertainty for crypto companies and investors.
Republican Senate leader John Thune stated before the vote that the bill was the next step after the previously passed GENIUS Act, which established federal rules for stablecoins. According to him, during negotiations, more than 100 amendments proposed by Democrats were incorporated into the CLARITY Act.
However, an agreement between the parties was not reached. One of the main points of contention was the provisions regarding possible conflicts of interest of American officials who have financial interests in the crypto business.
Democrats, including Senator Elizabeth Warren, stated that the proposed restrictions were insufficient to prevent President Donald Trump and members of his family from receiving income from related crypto projects. Republicans insisted that the bill already contains significant concessions to Democrats and creates the necessary regulatory framework for the industry.
Crypto Company Stocks Plummeted
The failure of the vote quickly impacted American companies associated with the crypto market. According to CoinDesk, Coinbase shares lost about 9% during the session, Circle – more than 9%, Galaxy Digital – about 8%, and Gemini – approximately 7%.
The decline also affected miners and trading platforms. Riot Platforms shares fell by about 5%, Bullish – by 5%, and Robinhood – by approximately 3%.
For the crypto industry, the result means that in the near future, the bulk of market rules will continue to depend on decisions by the SEC and CFTC. Industry representatives note that such rules may change along with administrations, whereas passing the law would create a more permanent regulatory system.
Previously, President Donald Trump called on Congress to pass the CLARITY Act, stating his intention to make the US the world center of the cryptocurrency industry.
