The CLARITY Act, a major crypto regulatory bill, failed to secure the 60 votes needed to advance in the U.S. Senate during a procedural vote on Tuesday, September 15.
The bill required 60 senators to overcome a procedural hurdle (cloture), but it fell short after Democrats withheld support over disagreements regarding ethics provisions aimed at preventing former President Donald Trump from profiting from his family's crypto businesses.
This failure leaves the U.S. market without a clear regulatory framework for digital assets, potentially delaying America's ability to compete globally in the sector and pushing some firms to seek more predictable jurisdictions like Singapore and Hong Kong.
Discussions on the bill are expected to continue in the coming weeks, as supporters seek a compromise that addresses Democratic demands and ensures passage.