Senate Blocks Crypto Bill Amid Concerns Over Trump Investments

The U.S. Senate voted 49-50 against advancing the Clarity Act, a bill that would establish a regulatory framework for the cryptocurrency market.

The procedural vote on Tuesday fell short of the 60 votes needed to clear the hurdle, dealing a setback to the crypto industry's push for a comprehensive market structure. Democrats expressed frustration that Republican negotiators did not adequately address concerns about public officials, including President Donald Trump and his family, profiting from crypto ventures. Senator Ruben Gallego, a key Democratic negotiator, stated that Republicans cared more about the president's financial gains than actual regulations.

The bill's primary architect, Senator Cynthia Lummis, R-Wyo., indicated that the effort was likely over for this session. The defeat occurred despite the industry spending over $300 million on elections and national advocacy campaigns. The Clarity Act aimed to divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, set registration requirements, and strengthen anti-money laundering protections.

Bitcoin prices fell 3% following the vote, while Coinbase and Circle shares slid 8% and 10%, respectively. Separately, Senator Thom Tillis, R-N.C., criticized President Trump's dismissal of AI dangers as a hoax, stating it is a real thing.