The Clarity Act failed to secure enough support to clear a procedural hurdle Tuesday afternoon, with every Democrat and several Republicans voting against the effort to advance the bill.
It was a stinging loss for an industry that has poured extensive resources into lobbying Congress for the legislation over the past two years, as well as the GOP lawmakers and administration officials that championed the push.
But crypto leaders are quickly shifting their hopes to a pair of financial regulators in the Trump administration: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
“The Senate has voted and we have a different type of clarity. It's time for agencies to step forward and for crypto voters to make their voice heard,” Faryar Shirzad, Coinbase’s chief policy officer, wrote in a post Tuesday on the social platform X.
Support for the Clarity Act crumbled after crypto-friendly Democrats and Republicans failed to reach an agreement on ethics language ahead of Tuesday’s vote.
Ethics were a longtime concern for Democrats, who voiced worries about passing legislation that could potentially boost President Trump and his family’s crypto businesses.
Senate Republicans put forward what an aide described as their “last, best and final offer” on Sunday with a new White House-backed ethics provision.
But Democrats indicated Monday the updated language still fell short, with Sen. Raphael Warnock (D-Ga.) telling reporters there were “a whole lot of loopholes.”
Talks continued up until Tuesday’s vote, in which Democrats ultimately blocked the legislation. They were joined by four Republicans — Sens. Susan Collins (Maine), Josh Hawley (Mo.), Jerry Moran (Kan.) and Thom Tillis (N.C.).
Read more about what's next for crypto regulation here.
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