Landmark crypto regulation bill stalls after Senate vote

The Senate has blocked a major cryptocurrency regulation bill after Democrats opposed advancing it without stronger ethics rules targeting President Donald Trump’s crypto interests.

Senators voted 49-50 on Tuesday, falling short of the 60 votes needed to advance the CLARITY Act. The bill aims to establish federal rules for digital assets and give crypto companies clearer regulatory requirements.

Democrats said the legislation needed tougher safeguards to prevent Trump and other officials from personally profiting from digital assets.

Trump agreed to several changes, including restrictions on officials issuing crypto and greater enforcement powers for state attorneys general, but negotiations failed to produce enough Democratic support.

This marks a major setback for the crypto industry, which had sought new regulations that could have strengthened digital assets’ political influence.

The White House said the failed vote could leave the US behind other financial centers on digital-asset regulation.