Senate fails to advance Trump-backed crypto Clarity Act bill

The Senate failed Tuesday to advance the Clarity Act, which is a cryptocurrency bill that would establish the first comprehensive federal framework for the industry.

The Senate voted 49-50 against a motion to proceed with consideration of the Trump-backed Clarity Act, failing to reach the required 60-vote threshold, after all Democrats and a handful of Republicans voted against it.

The bill would have established clearer rules for digital assets and determined whether particular tokens fall under securities or commodities laws.

It would also divide regulatory authority over the digital asset market, giving the Commodity Futures Trading Commission a larger role while defining which cryptocurrencies should fall under the jurisdiction of the Securities and Exchange Commission.

Approximately a dozen Democrats were considered potential yes votes, but ultimately rejected the legislation after the two sides failed to reach an agreement on ethics rules, according to The Hill.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.