Senate blocks Clarity Act crypto market bill

The Digital Asset Market Clarity Act, which would have set rules for how crypto firms operate, fell short of the 60 votes needed to advance.

The US Senate blocked the Digital Asset Market Clarity Act, a bill meant to give crypto firms legal certainty and set out a market structure framework for the industry, CoinDesk reported. The vote needed 60 supporters to move forward, and CoinDesk had reported ahead of the vote that it was unclear whether the bill even had 50.

Many Democrats opposed the bill largely because it lacked ethics provisions covering President Trump and his family's crypto ventures, CNBC reported. Republican Senator Cynthia Lummis said the updated text included more than 120 changes sought by Democrats and urged colleagues to vote yes.

The bill can still be brought back in amended form, CNBC reported, though it is unclear whether there is enough time left in this Congress to revise and pass it. A similar effort failed earlier this year, when the Senate blocked the GENIUS Act stablecoin bill in a 48-49 procedural vote after Democrats who had previously backed it withdrew their support, according to NBC News and The Hill.

The block removes the near-term regulatory clarity that crypto markets had been pricing in, and it makes near-term volatility more likely as investors reassess the policy risk facing the sector. With the Senate's attention focused on AI and cybersecurity threats, crypto regulation looks set to stay a lower priority in Congress, leaving the industry without the framework many traders had expected.