The U.S. Senate on Tuesday failed to overcome a key procedural hurdle for the Clarity Act, hampering efforts to establish a federal crypto market framework.
Senators voted to reject the cloture motion on moving forward with the proposal—a step that would have limited debate on whether to adopt the legislation, and which required 60 votes.
The Clarity Act would have created rules for the crypto market, essentially legalizing most crypto activities in the U.S. and clarifying the respective responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Tuesday’s outcome effectively blocked further consideration of the Clarity Act in the Senate. According to the bill’s top supporter in Congress, Wyoming Senator Cynthia Lummis, today’s failure to achieve cloture means the bill is all but dead. “It’s over,” she said earlier today.
The vote came after a delay following the Senate’s August recess, as lawmakers negotiated over stablecoin incentives, safeguards against illicit finance, and ethical restrictions covering Donald Trump’s crypto interests.
This is a breaking news story and will be updated.
