US Senate Blocks Major Crypto Law, Leaving Digital Market Without Clear Rules
The United States Senate has failed to pass a key bill for the cryptocurrency market. This decision is a major blow to efforts that wanted to create federal rules for digital money. The bill, supported by President Donald Trump, did not get enough votes on Tuesday to move forward.
The Digital Asset Market Clarity Act received 50 votes in favor and 49 against. However, it needed 60 votes to advance to a full debate. All Democrats voted against the bill. Four Republican senators also joined them.
A main reason for the bill’s failure was concerns about Mr. Trump’s large investments in cryptocurrency. Senator Elizabeth Warren, a leading Democrat, said the bill would create “massive risks” for families and the economy. She also said it would help Mr. Trump earn “billions” from crypto.
Community banks also strongly opposed parts of the bill. They worried that allowing rewards on stablecoin holdings would take money away from traditional banks. This could reduce funds for farmers and small businesses.
The crypto industry spent hundreds of millions of dollars to support this bill. Mr. Trump, who has earned over $1.4 billion from his family’s crypto projects, had urged Congress to pass it. He even called himself a “crypto president” during his election campaign.
With Congress soon leaving for the November elections, the bill is unlikely to be discussed again soon. This means there are still no clear national rules for digital assets. Experts say only Congress can create lasting rules. Without legislation, regulations made by agencies like the US Securities and Exchange Commission could change easily or face legal challenges.
The market reacted quickly to the news. Bitcoin, the world’s largest cryptocurrency, fell more than 5 percent. Shares of crypto exchange Coinbase and stablecoin issuer Circle also dropped by as much as 10 percent.
