The Clarity Act, which aimed to grant the Commodity Futures Trading Commission primary regulatory authority over digital assets, failed to pass in the US Senate. The bill required 60 votes to proceed but secured only 49 in favor, with 50 votes against it during the procedural vote held this Tuesday.
A key point of contention within the legislation was the inclusion of a circuit breaker mechanism. This provision would have empowered the US Treasury to prohibit crypto firms from offering rewards, interest, or yields to stablecoin users, creating friction between the digital asset sector and traditional banking.
Following the failed vote, the cryptocurrency market experienced a sharp sell-off. Bitcoin prices dropped by 5.3 percent, falling below $75,000 and reaching a low of $74,910. Ethereum saw a steeper decline, with its value falling by more than 8.3 percent.
