A Trump-backed crypto bill just suffered a bruising defeat in the Senate
3 hours ago
- The Clarity Act, backed by President Trump and crypto executives, failed to clear a procedural vote in the Senate due to Democratic opposition and needed 60 votes but got only 49.
- The bill aimed to establish the first U.S. regulations for the crypto sector, splitting oversight between the SEC and CFTC but giving the CFTC majority control, which critics saw as too lenient.
- Democrats opposed the bill primarily over an ethics clause that they argued didn't sufficiently prevent presidents and officials from profiting from crypto, citing Trump's $1.4 billion earnings from his ventures.
- Community bankers opposed the bill because it would allow stablecoin companies to pay interest to customers, potentially competing with banks without facing the same regulations.
- The bill's future is uncertain due to opposition, possible changes in Congress after midterms, and a need for both chambers to agree on a final version if it advances.