Bitcoin and crypto stocks slip as Clarity Act fails to advance in Senate (updated)

The Senate on Tuesday failed to advance a comprehensive cryptocurrency bill, the Clarity Act, due to opposition from Democrats and a few Republicans. The legislation, which would establish a regulatory framework for digital assets, fell short of the required 60 votes for progress, with all Democrats and four Republicans opposing.

Senate Majority Leader John Thune argued that passing the Clarity Act would be the next logical step after last year's approval of the Genius Act, a light-touch approach to digital asset regulation. Thune highlighted the bill's distinction between the Commodity Futures Trading Commission and the Securities and Exchange Commission, aiming to harmonize crypto enforcement rules.

He also emphasized that the bill prevents companies from circumventing securities laws applicable to other financial assets and protects investors. However, Democrats remained unconvinced, with Sen. Elizabeth Warren arguing that the bill poses significant risks to families, the economy, and national security. Warren claimed the legislation would enable President Trump to profit from his crypto ventures, a concern she addressed by urging her Republican colleagues to negotiate a more comprehensive and bipartisan crypto bill.