The CLARITY Act still has a procedural path after Senator Thom Tillis moved to reconsider the failed cloture vote, though industry executives are divided over whether Congress has enough time left. Crypto industry leaders are looking to US financial regulators to fill the regulatory gap after a major crypto bill establishing a regulatory framework for digital assets stalled in the Senate on Tuesday. The Senate voted 49-50 on a motion to invoke cloture and advance the CLARITY Act, short of the 60 votes needed as Democrats raised concerns over US President Donald Trump’s crypto investments. Industry executives said the result was a disappointment, but pointed to potential rulemaking from the US Securities and Exchange Commission and Commodity Futures Trading Commission as the next best source of regulatory clarity. Read more
Circle and Coinbase shares fell about 10% as the failed Senate vote weighed on crypto-linked equities, with Bitcoin miners and treasury companies also declining. Crypto-linked stocks fell sharply on Tuesday after the US Senate failed to advance the CLARITY Act, with shares of Circle and Coinbase dropping about 10%. Bitcoin treasury companies were also hit, with American Bitcoin falling around 8%, while Strategy and Strive each declined about 5%, according to Yahoo Finance data. Bitcoin miners joined the selloff, with Riot Platforms falling about 6%, CleanSpark nearly 5%, Hut 8 more than 4% and IREN almost 4%. Coinbase (COIN) shares fell 9.9% on Tuesday. Source: Yahoo Finance Read more
The failed procedural vote leaves the CLARITY Act facing an uncertain future after months of negotiations over crypto oversight and ethics provisions. The US Senate on Tuesday failed to pass a cloture motion on the Digital Asset Market Clarity (CLARITY) Act that would have established the country’s first regulatory framework for digital assets. The motion received 49 votes in favor and 50 against, short of the 60 votes needed to advance the legislation to debate on the Senate floor. With less than 36 days of business before 2027, when a new session of Congress is scheduled to be sworn in after November’s midterm elections, the bill will likely not see further action for the rest of the year. Read more
Banking groups also said the GOP’s final text leaves stablecoin reward loopholes, while tribal gaming interests warn that its prediction market provisions threaten tribal sovereignty. Odds of the CLARITY Act becoming law this year on Polymarket fell sharply again on Monday after spiking the day before, as key Senate Democrats reportedly said they had not been swayed by Republicans’ “final” crypto bill proposal. Polymarket traders initially saw a newly revised Republican proposal with expanded ethics provisions as a positive sign, sending the odds to 35%. However, their confidence was dashed as reservations about the revised text began mounting, with the odds falling back as low as 16% on Monday. US Senator Mark Warner, one of the Democrats involved in negotiations, reportedly said the revised ethics provision was not “near enough,” while Democrats involved in negotiations began preparing a counterproposal on Monday. Read more
Some Democrats remain dissatisfied with the bill’s crypto ethics provisions and will be sending a counterproposal just hours before a key procedural vote. Senate Democrats working on the crypto market structure bill are reportedly preparing a counterproposal to the Republicans’ latest revised CLARITY Act text, despite GOP lawmakers describing it as their “last, best and final offer” to Democrats when they released it Sunday. Democrats working on the bill met in Senate Minority Leader Chuck Schumer’s office on Monday, according to Politico. It is understood that some Democrats remain unsatisfied with crypto ethics language in the latest bill text. “The Democrats who’ve been working on this in good faith are sending a counterproposal,” Senator Mark Warner told Politico as he exited the meeting. Read more
Trump’s ethics concession addresses one hurdle for the crypto bill, but 18 state attorneys general say the revised legislation would weaken state oversight. The CLARITY Act is heading for a crucial US Senate procedural vote on Tuesday after President Donald Trump agreed to most of a bipartisan proposal to strengthen ethics restrictions around public officials’ crypto interests, according to various reports. However, the latest compromise hasn’t resolved all of the opposition, with a bipartisan group of state attorneys general now urging senators to reject the bill over concerns that it would weaken state oversight of the crypto industry. A coalition of 18 state attorneys general, led by New York Attorney General Letitia James, argued in a letter to Senate Banking committee leaders that the CLARITY Act would make it harder for states to take action against crypto companies accused of fraud or other misconduct. Read more
Bitcoin traders brace for volatility as the CLARITY Act awaits a Senate vote to move forward and the Fed is due to announce its latest rate decision. Bitcoin (BTC) is starting the third week of September below key weekly support levels as traders eye volatility cues. Read more