The US Senate failed to advance a key cryptocurrency regulation bill on Tuesday. The procedural vote ended 49–50, falling short of the required 60 votes.
The Clarity Act bill provided for the transfer of primary authority for regulating digital assets to the Commodity Futures Trading Commission. It was supported by many industry representatives and the White House.
Democrats blocked the measure, stating that the ethical provisions within it were not strict enough. They concerned President Donald Trump's investments in cryptocurrency, which, according to financial disclosures, earned him about 1,4 billion dollars over the past year.
Several Republicans also voted against it. Among them were Susan Collins of Maine and Josh Hawley of Missouri. Even some Democrats who had previously supported crypto regulation ultimately refused to advance the document.
Negotiations lasted for months. Republicans introduced amendments, including a ban on the issuance of memecoins for elected officials and strengthening the role of state attorneys general. However, Democrats deemed these concessions insufficient.
Senator Elizabeth Warren called the ethical standards a "weak fig leaf" that would not stop the president from continuing to profit from crypto. Other Democrats pointed to the risks of conflicts of interest in regulating an industry in which the head of state has a stake.
The failed vote was a serious blow to the crypto industry. Shares of Coinbase and other companies fell, and Bitcoin lost more than 5% of its value. With the midterm elections approaching in November, the chances of re-advancing the bill in this session of Congress are minimal.
What now awaits the industry, which has invested more than 100 million dollars in lobbying?
Senator Thom Tillis expressed hope for continued work, but many observers believe that the bill is effectively dead until the next elections.
