Senate Fails to Pass Clarity Act; Crypto Market Reacts
The U.S. Senate rejected the Clarity Act on Sept. 15, a bill intended to establish federal market-structure rules for cryptocurrencies and divide oversight between the SEC and CFTC. The failure of this key vote has led to uncertainty about future regulatory frameworks in the crypto space. In response, some major cryptocurrencies like XRP fell by over 8%, while Ethereum and Solana also dropped slightly. Despite the setback, regulators have indicated they will continue developing policies similar to those proposed under the Clarity Act. The failed vote was not strictly along party lines but came close. Republican sponsors made last-minute changes in an attempt to satisfy Democrats, who remained concerned about ethics rules related to crypto ventures linked to former President Donald Trump and his family. With no further action expected until after November's midterm elections, the bill may be shelved indefinitely. In its absence, both the SEC and CFTC have signaled their intent to move forward with new policies that align with some of Clarity Act’s goals.
