The US Senate failed Tuesday to advance a cloture motion on the Digital Asset Market Clarity (CLARITY) Act, which would have established the nation’s first comprehensive regulatory framework for digital assets.
With fewer than 36 days of business remaining before 2027, when a new Congress is sworn in following November’s midterm elections, the bill is unlikely to receive further consideration this year.
The defeat leaves unanswered how the cryptocurrency sector will be regulated at the federal level, particularly the respective oversight roles of the Commodity Futures Trading Commission and the Securities and Exchange Commission.
The legislation had previously stalled before Congress’ August recess over ethics provisions that would bar government officials and their families from issuing or profiting from digital assets while in office. President Donald Trump agreed to most of a bipartisan proposal to strengthen those restrictions ahead of Tuesday’s vote, but opposition emerged from a new quarter: 18 state attorneys general argued the bill would undermine states’ ability to police crypto fraud and misconduct.
