Senate cloture vote on Clarity Act fails, dealing regulatory blow to crypto industry

The US Senate has voted to block the Clarity Act from advancing, dealing a blow to the crypto industry's push for a comprehensive market framework. The bill, which aimed to establish the country's first regulatory framework for digital assets, fell short of the 60 votes needed to advance to debate on the Senate floor.

The failed procedural vote leaves the Clarity Act's future uncertain, with little time left in the current session of Congress. According to Cointelegraph, there are less than 36 days of business before 2027, when a new session of Congress is scheduled to begin. The setback leaves the regulation of the cryptocurrency sector at the federal level unresolved, including the oversight roles of the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Opposition to the bill emerged from 18 state attorneys general, who argued it would weaken states' ability to police crypto fraud and misconduct. Despite this, Sen. Elizabeth Warren remains determined to get a crypto bill signed into law, although she does not support the current Clarity Act, according to The Block.

Brief written by urgent.news from CNBC Technology, CNBC World, CoinDesk, Cointelegraph, The Block — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.