From CNBC · Tanaya Macheel,Garrett Downs · · 1m 30s
Senate blocks the Clarity Act
A procedural vote in the Senate stalled the crypto industry's biggest legislative push, and the market felt it immediately.
In brief
A procedural vote in the Senate stalled the crypto industry's biggest legislative push, and the market felt it immediately. Crypto's market structure bill is dead for this year, so the industry's rules will now be shaped by the SEC and CFTC instead of Congress. Originally reported by CNBC.
The vote that stopped it
The Senate voted Tuesday to block the Clarity Act from advancing, ending months of negotiation over a market structure framework for crypto. The bill is now stalled on Capitol Hill.
Ethics fight sank the deal
Republicans released a revised bill Sunday with new limits on officials profiting from crypto. Democrats said it still did not address gains by Trump and his family.
“The compromise we had was a good ethics compromise that would have bought a lot of Dem votes”
Fifty votes, sixty needed
The motion to proceed drew 50 votes for and 49 against, ten short of the threshold to clear the procedural hurdle. Industry lobbyists had been confident it would pass.
Markets took the hit
Bitcoin fell 3% on the news. Coinbase dropped 8% and Circle slid 10%, amid a broader sell-off.
What the bill would have done
It would have split oversight between the SEC and CFTC, set registration requirements, and tightened anti-money-laundering rules. Passing the Senate was only the first step.
Regulators now hold the pen
With midterms seven weeks out and Congress heading home in early October, the industry waits until next year. The SEC has proposed a $75 million unregistered token exemption, and the CFTC cleared US bitcoin perpetual futures.
“it's over”
The headline
Crypto's market structure bill is dead for this year, so the industry's rules will now be shaped by the SEC and CFTC instead of Congress.
