The US Senate failed to move forward with the Clarity Act, a bill intended to establish a comprehensive federal regulatory framework for the digital asset market. Sixty votes were needed to pass the procedural vote, but the bill did not receive the necessary support.
The bill was intended to define the division of authority amongst US regulators, establish rules for the issuance and trading of digital assets, and reduce the long-standing legal uncertainty surrounding the classification of cryptocurrencies.
The bill was backed by a significant proportion of the crypto industry, but many Democrats and several Republican senators opposed it. Among the contentious issues were requirements regarding the ethics of public officials, potential conflicts of interest surrounding President
Donald Trump and his family’s crypto assets, and concerns from the banking sector about competition from profitable stablecoin products.
The market reacted with a fall. Following the vote, Bitcoin lost around 4 per cent and traded at around $75,900, whilst shares in Coinbase and Circle Internet Group fell by approximately 9 per cent.
Despite the vote’s failure, the bill has not been formally withdrawn. However, its progress is becoming increasingly difficult as the US mid-term elections approach. In the absence of a decision by Congress, the SEC and CFTC will continue to play a key role in regulating the crypto market. In 2026, the SEC had already presented specific proposals regarding the regulation of the issuance of crypto assets and tokenised securities.